Tax
Small business owners and their employees are the engine that drives the economy. They account for over 70 million people in the United States, and over 2.5 million Ohio business owners and their employees. Thus, small business tax policy is a major focus in COSE’s advocacy efforts. Congress and the Ohio General Assembly need to streamline the taxation system in two key areas in order to remove barriers to small business success.
1. Streamline the System.
We must streamline the taxation system and remove hurdles to small business success such as the estate tax, invasive reporting and withholding requirements.
2. Eliminate the Self-employment Tax on Health Insurance.
Self-employed individuals are forced to pay self-employment taxes on the income used to purchase health insurance. This adds up to a 15.3% tax on health insurance that no one but a self-employed individual must pay.
On a state level, The Governor of Ohio and state legislators should consider ways to reduce the complexity of paperwork and investment of time required for complying with state tax filings.
Small business tax policy is an important issue on a federal level. COSE supports the elimination of the self-employment tax on health insurance and reducing the complexity and effort required to comply with federal tax codes.