Congressman John Tierney today called the Republican Small Business Tax Cut Act a ruse to give the wealthiest Americans billions of dollars in additional tax breaks this year. The GOP claims its bill would benefit mom and pop small businesses and our economy, but in fact provides tax cuts for millionaires, does nothing to create or retain jobs, and would drastically impact our deficit. Further, Congressman Tierney expressed his outrage that Republicans pushed this bill which would add $46 billion to the deficit this year, at the same time they are refusing to move legislation to keep student loan interest rates down at a fraction of the same cost.
"The House GOP continues to showcase its allegiance to the wealthiest Americans, while actual small businesses, middle-class families and students are left saddled with the burden of our economic recovery. Instead of bringing forward a bill that is irresponsible and unbalanced, Republican leadership should focus on efforts that will continue to revive our economy and get Americans back to work," Congressman Tierney said.
The Republican "Small Business" Tax Cut Act misses its target and goes directly into the pockets of millionaires (those with incomes more than $1 million would receive nearly half the benefits , even though they comprise less than one half of one percent of all taxpayers and just four percent of small business employers). Unfortunately, the bill, which Congressman Tierney opposed, passed by a vote of 235 to 173 this afternoon. The Senate is not expected to take action.
The only qualification for the 20% deduction of all business expenses tax break is that a firm employ less than 500 employees, which will lead to a windfall for "small" businesses that include: professional sports franchises like the LA Dodgers, Donald Trump's Trump Tower Sales & Leasing, hedge fund managers, and high paid lobbyists. The bill will also directly benefit companies that eliminate or offshore jobs because there is no requirement that a company actually create or even retain jobs or in any other way invest in economic growth to claim the special deduction. By bringing forth this bill the GOP completely misses the real problem facing small businesses -- a lack of demand.
"In contrast to their efforts to provide another windfall for their wealthy supporters, the GOP-led House refuses to act to avoid expiration of the subsidized Stafford Student Loan Reduction set to expire June 30 unless extended. Allowing this reduction to expire would saddle students and families with an average of $23,000 in debt. Our families cannot afford this kind of behavior. Rather than waste time passing another Republican bill to help millionaires and billionaires, we should take immediate action to pass legislation to ensure that our students have the opportunity to receive the education and training needed to succeed in the workforce without incurring decades of debt," Tierney concluded.