House GOP: Cut Taxes for Small Businesses by 20%

House Republicans have proposed a 20 percent tax cut for one year for small businesses with fewer than 500 employees.
The Small Business Tax Cut Act allows qualified small businesses to take a tax deduction equal to 20 percent of their business income, regardless of how the small business is organized.
House Majority Leader Eric Cantor, R-Virginia, on Wednesday introduced the bill that includes limited exceptions. For example, the tax cut generally cannot exceed 50 percent of the wages paid employees.
The tax break would apply to the rest of this year for “any employer engaged in a trade or business if such employer had fewer than 500 full-time equivalent employees for either calendar year 2010 or 2011.”
“What the bill will do is it – bottom line – will put more revenues, more money into the hands of small business owners so that they can reinvest those funds to retain and create more jobs and to grow their business,” Cantor said in a statement.
See statements by small business owners on Cantor’s website.

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