The U.S. House has approved a tax cut measure for small businesses. That’s the good news. The bad news is that the legislation is expected to stall in the Senate and even if it emerges from Congress, President Barack Obama has threatened to veto it.
The legislation, of course, is greased in politics. The House approved the GOP-blessed bill along party lines, 253-173. It would be a one-year tax cut for companies with fewer than 500 employees. Republicans say it would boost job creation. It would be a 20 percent tax cut for their domestic business income, with the total limited to no more than half of the wages paid.
Democrats based their opposition to the bill since it has no requirement that companies hire workers. They favor the so-called Buffett Rule, which is a plan for an alternative minimum tax of 30 percent for people making $1 million or more. The Buffett Rule is stalled in the Senate. It wouldn’t help small businesses.
Small business is the backbone of the economy and the pain for them would be eased by the GOP pill (bill). With the political tug of legislation going on in Congress, and with each party eyeing the elections, our lawmakers might as well go home and face their scornful voters.
They refuse to compromise!