Eric Cantor Proposes $46 Billion Small Bus. Tax cut, says its a 'stimulus', Political stunt or stimulus ?

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    Apr 18, 2012 10:07 PM GMT
    Eric Cantor Tax Cut Would Probably Benefit Dodgers, Paris Hilton, Donald Trump By Ariel Edwards Levy of Huffington post

    House Majority Leader Eric Cantor (R-Va.)'s proposed $46 billion tax cut for small businesses would likely be a home run for lucrative sports teams like the Los Angeles Dodgers, a congressional staffer confirmed Wednesday.

    Last month, Cantor proposed allowing all small businesses -- companies with fewer than 500 employees -- to take an income tax deduction of up to 20 percent, regardless of industry or income. During a question and answer session Wednesday, Joint Committee on Taxation Chief of Staff Thomas Barthold said the cut still applied to any small business, including rich ones.

    "Last night there was breaking news that in my town of Los Angeles, our baseball franchise, the Los Angeles Dodgers just sold for $2 billion. They obviously had a pretty high payroll for some of their employees. If they happen to have fewer than 500 employees, would they qualify for this small business tax cut?" Rep. Xavier Becerra (D-Calif.) asked.

    "As has been noted, there's no prohibition by type of enterprise or business so if the Dodger organization...numbered fewer than 500 employees, the Dodgers would qualify, sir," Thomas Barthold said.

    Answering further questions, Barthold said other sports teams, as well as companies owned by Donald Trump, Larry Flynt and Paris Hilton would also qualify for the tax cut if they passed the common control test and were determined to have fewer than 500 employees.

    Barthold also said there was no requirement that a company hire people or refrain from outsourcing jobs to qualify.

    "Is there a requirement that you create jobs?" Becerra asked.

    "There’s no requirement on the result of the tax relief," Barthold said.

    Democrats have criticized that element of Cantor's plan, and this week offered a more-targeted $26 billion small business break.

    Cantor spokeswoman Laena Fallon noted, however, that the majority leader's bill would help 22 million businesses with an average cut of about $6,500.


    $6500 average tax break for small business will not be enough to hire even a part time person. So how is this to help ?

    Should republicans Suggest a $7 or $800 billion Stimulus of their own ?

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    Apr 18, 2012 11:57 PM GMT
    WHAT ??? No republicans for Cantors 'stimulus' or increasing it up to say $7 or 800 Billion, how about tax cuts that size then he could call that stimulus ?
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    Apr 19, 2012 12:14 AM GMT
    500 employees a small business? I think not!
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    Apr 19, 2012 9:22 PM GMT
    WP Politics
    House approves small-business tax cut plan

    By Rosalind S. Helderman and Ed O’Keefe

    The GOP-controlled House voted Thursday to extend new tax cuts to businesses with fewer than 500 employees, a vote designed to contrast with Democratic push this week to impose higher taxes on those making more than a million dollars a year.

    The measure was approved on a largely party line 235 to 173 vote, with both parties believing that Republican-backed measure is a perfect foil to the Senate’s attempt to pass the so-called “Buffett Rule,” which was blocked Monday.

    As we noted above the average tax cut will only amount to about $6500 and that will not be a figure that will 'employ' any new people.