–House Majority Leader Cantor Says Bill Would Boost Small Firms
–House Dems Say Bill Would Be A Boon For Doctors, Lawyers, Movie Stars
–House Vote Follows Senate Vote Earlier In Week On Buffett Tax
By John Shaw
WASHINGTON (MNI) – The House Thursday will vote on legislation
crafted by House Republicans that would reduce taxable income on
businesses with fewer than 500 employees by 20%.
The bill has been championed by House Majority Leader Eric Cantor
who has argued that it would spur small business job creation.
Cantor has said the one-time tax cut would cost $45 billion and
would not be offset.
Under the bill, small businesses would be allowed to deduct 20% of
their income from taxes on up to 50% of their W-2 wages. Cantor
emphasized the measure would apply to businesses with fewer than 500
employees.
Cantor has said that while this bill is important, efforts must
continue on broad tax reform.
Democrats have said that bill is poorly drafted and would allow
deep tax cuts for affluent lawyers, doctors and even movie stars. They
argue that the 500 employee threshold would give tax cuts to many
entities that are not the protype of small businesses that the GOP
purport to champion.
The White House opposes the bill.
The House GOP bill is seen as a message response to a vote staged
Monday by Senate Democrats.
On a procedural vote Monday, Senate Republicans blocked formal
consideration of a “Buffett Rule” bill which would set a minimum
effective tax rate for high-income earners. The specific bill, which was
being pushed by Senate Democratic leaders, would require people who earn
more than $1 million annually to pay a minimum tax rate of up to 30%.
To advance in the Senate, the bill required 60 votes but it only
secured 51 votes.
** MNI Washington Bureau: (202) 371-2121 **
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