Tuesday, April 24, 2012
In the works, in answer to the Buffet Rule introduced by the Democrats, the Republicans in the House are now proposing to pass a small business tax cut that would be proposed for just one year. The tax cut would provide a 20 percent tax deduction on business income to business owners that have fewer than 500 employees.
The Republicans argue that this cut would be a better solution for the deficit situation than that of the Buffett rule, as they believe that the Buffett would cause harm to small businesses.
The President may have been more open to sign such a tax cut prior to the Republicans defeating the Buffett rule in the U.S. Senate where of course it failed by a vote of 51-41. Fifty Republicans voted against the bill.
Now the House which likely may pass the bill, doesn't really stand a chance of getting the bill passed, because President Obama claims that he will veto it. He plans to block the small business tax cut.
Opponents of the bill say that this cut would mostly help wealthy lawyers and consultants. But people who really need a tax break, middle class and low income class would not benefit. So the squabble between the House and Senate continues to go forward, but in a matter of days we will see if the small business tax cut is moved to Obama's desk for him to sign, but again, most likely he will veto it.