Lawmakers Working To "Fix" Business Tax Rate
State lawmakers continue working to fix a budget provision that imposes an unintended tax increase on some small businesses.The budget allows small business owners to deduct up to 75 percent of their first 250 thousand of income this tax year, then 100 percent in 2016. A 3-percent flat tax is applied on the remaining profit in both years. For some, the rate for this tax year is higher than that paid prior to the budget. Lawmakers had wanted the flat tax applied on business income over 250 thousand dollars, and are considering legislation clarifying their intent. Changes to the bill are still being finalized.