Small Business Tax Cut Act

April 19, 2012 | H.R. 9

Touted as part of the Republicans so-called "jobs" package, the bill doesn't include a single requirement that businesses create jobs or invest within the United States before qualifying for the new tax deductions. It simply adds even more tax loop holes for businesses to take advantage of. It allows businesses with fewer less than 500 employees to deduct 20% of their domestic business income. The Joint Committee on Taxation found that H.R. 9's impact on economic growth and jobs is "so small as to be incalculable." The Urban-Brookings Tax Policy Center estimates that nearly half of the $46 billion tax cut would go to people with incomes more than $1 million a year. The bill passed.