House Budget Would Change Controversial Small Business Tax Cut
The House version of the budget comes out Thursday. And it will include a change to a controversial deduction that allows some small businesses to take up to a quarter of a million dollars in income tax-free.
Speaker Larry Householder (R-Glenford) said he wants to take that small business tax deduction from the first $250,000 in income down to $100,000 – which he says still provides incentives for small businesses to reinvest.
“We think that when you get above that number, it starts to stray a little bit and we’re probably taking care of some folks that are putting it in the bank or putting it in their pocket," Householder said.
Democrats have been calling for a change in this deduction for years, saying that it’s been allowing many one-person businesses and partnerships to take billions in tax credits without creating any jobs.