Remaining committed to their promise to get America back on track, House Republicans led by Congressman Dave Camp (R-Midland, MI) and House Majority Leader Eric Cantor (R-VA) introduced H.R. 9, the Small Business Tax Cut Act of 2012, today. The legislation will allow businesses with fewer than 500 employees to take a tax deduction equal to 20% of their active business income and applies to business owners who pay their taxes at the individual or corporate level.
As chairman of the House Ways and Means Committee, Camp indicated that he expects the legislation will come before the committee for full consideration in the near future. Camp highlighted the immediate impact of the Small Business Tax Cut Act saying, "Whenever I am talking with small business owners in our community, the question I am often asked is, "how can we help spur a climate so the private sector can create jobs?' There is no doubt that comprehensive tax reform that lowers rates and makes the code simpler and fairer is key to that goal, and as we pursue tax reform, we still need something that can help small business today. This deduction is clear and simple. Small businesses will be able to take advantage of it immediately, and that can benefit job creation and economic growth right now."
Michigan small business owners praised Camp's effort. As part of the 400-employee Merrill Technologies Group, President Bob Yackel stated, "The best way Washington can help energize economic growth is by making sure business owners are spending less on tax payments and more on creating jobs. As a manufacturing business in Mid-Michigan, we know firsthand the ramifications of the recent economic turmoil I'm proud our Congressman is taking the steps necessary to promote economic prosperity here and across America."
Jim Holton, owner of Mountain Town Station in Mount Pleasant, has served the central Michigan community as a restaurant owner for more than 15 years and commented on the ease of the legislation. "The beauty of the Small Business Tax Cut act is its simplicity. If you are earning profits and contributing to the economy, then you can take 20 percent off your tax bill. No hoops to jump through. This is a great way for business owners like myself in the Great Lakes Bay region and across America to help jumpstart our economy."
As Majority Leader Cantor indicated the legislation is expected to come before the House of Representatives for a vote in mid-April, around Tax Day.
"It doesn't matter how you are organized. It is money straight to the bottom line of the small businessman and woman to be able to retain more of the monies earned to be able to invest back in those businesses and create more jobs," said Cantor.