Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes an income tax deduction of 20 percent for small businesses, beginning in the 2012 tax year.

Highlights:

• Authorizes a qualified small business to claim a tax deduction of 20 percent of the lesser of the following (Sec. 2):
• Qualified domestic business income for the taxable year; or
• Taxable income for the taxable year.

• Defines a “qualified small business” as any employer engaged in a trade or business who employs fewer than 500 full-time employees (Sec. 2).

• Defines “qualified domestic business income” as the businesses' gross receipts for the taxable year, minus the cost of any goods that were sold, business expenses, and losses (Sec. 2).

• Limits the deduction to 50 percent of the greater of the following (Sec. 2):
• The wages paid to employees who are not owners of the business; or
• The sum of the wages paid to non-owner family members and owners of less than 10 percent of the business' stock, capital or profits.

Full Bill Text

Full Bill Text