Policy Matters Ohio: Loopholes Upon Loopholes

As noted, of the three deductions, by far the most taxpayers took advantage of the deduction for self-employment taxes. The Institute on Taxation and Economic Policy, which has a model of the federal and Ohio tax systems, roughly estimates that 330,000 of the Ohio taxpayers who had business income and took the self-employment tax deduction also had non-business income of at least $10,000 from wages, capital gains, interest or dividends.

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