Today, as the House passed the Small Business Tax Cut Act of 2012, Congressman Marlin Stutzman (IN-03) issued the following statement.
"The Small Business Tax Cut Act is based on the simple truth that the economy grows when Americans keep more of their hard earned dollars," said Stutzman. "In the real economy, small businesses--not big bureaucracies--write the success stories. Small businesses employed 1.2 million Hoosiers in 2009. When innovators, entrepreneurs, and family businesses keep more of their money, they can create jobs and make key investments. Right now, small businesses are struggling under enormous tax burdens, rising gas prices, excessive regulations, and Washington's uncertainty. This bill takes an important step to lift that tax burden. Earlier this week the Senate voted on the misguided "Buffett Tax." Hoosiers deserve better. The Senate should pass this important tax relief without delay."
According to the Small Business Administration, there were over 109,000 small businesses (businesses with fewer than 500 employees) in Indiana in 2009. Under the current tax code, small businesses can face up to a 35% federal tax rate. The Small Business Tax Cut Act of 2012 would allow small businesses, irrespective of whether they are structured as a corporation or as a pass-through, to deduct 20% of their income from their taxable income.