Daily Tax Update - April 19, 2012: House Passes Small Business Tax Cut Bill

HOUSE PASSES SMALL BUSINESS TAX CUT BILL:  Today, the House voted 235-173 to provide a 20 percent tax deduction to more than 99 percent of US businesses.  The Small Business Tax Cut Act (H.R. 9), sponsored by House Majority Leader Eric Cantor (R-VA), would give the deduction to every small business with fewer than 500 employees, but would limit the value of the deduction to 50 percent of W-2 wages.

  • Cantor said, "Tax policies should encourage economic growth, investment, and job creation, not stifle it. We need to stop and think about what kind of country we want to be, and do we want to be one with lower taxes, more growth, and more jobs? Our bill puts more money into the hands of small business owners so they can reinvest those funds to retain and create more jobs and grow their businesses."
  • The Administration has threatened to veto the bill.  House Minority Whip Steny Hoyer said, "This is a fiscally totally irresponsible piece of legislation, and you know it and I know you know it, and America ought to know you know it. What this bill does is blow a $46 billion hole in the deficit this year alone."

TAX BILL INTRODUCED APRIL 18TH:

H.R. 4397: To amend the Internal Revenue Code of 1986 to allow a deduction for expenses paid for household and dependent care services necessary for gainful employment and to increase, and make refundable, the credit for such expenses.
Sponsor: Rep Maloney, Carolyn B. [NY-14] (introduced 4/18/2012)      Cosponsors (None)
Latest Major Action: 4/18/2012 Referred to House committee. Status: Referred to the House Committee on Ways and Means. 

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