clip This week, the House Republican leadership is expected to bring up the Small Business Tax Cut Act, a bill to let most business owners deduct up to 20
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, Apr 15, 2012
This week, the House Republican leadership is expected to bring up the
"Small Business Tax Cut Act," a bill to let most business owners deduct
up to 20 percent of their business income in 2012 - a $46 billion tax
cut. Despite the Mom-and-Pop label, it is designed so that nearly half
of the tax cut would go to people with annual income over $1 million,
and more than four-fifths would go to those making over $200,000, according to the Tax Policy Center.
The bill's proponents, led by Majority Leader Eric Cantor, say that
lower taxes would lead to more hiring. But the economic reality is that
employers, big and small, are hesitant to hire because of slow or
uncertain demand for their products and services, not because of their
tax burden. And companies would receive the tax cut even if they did not
hire new workers - making it a windfall, not an incentive.