H.R. 9, Small Business Tax Cut Act

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H.R. 9, Small Business Tax Cut Act
from CBO Recent CBO Publications
H.R. 9 would amend the Internal Revenue Code to permit certain small businesses to deduct from their taxable income up to 20 percent of their qualifying domestic business income. The deduction would apply only to the entity’s first taxable year that begins after December 31, 2011, and it could not exceed 50 percent of certain wages that the firm pays or reduce the firm’s taxable income below zero. The staff of the Joint Committee on Taxation (JCT) estimates that enacting H.R. 9 would reduce revenues, thus increasing federal budget deficits by $46 billion over the 2012-2022 period.

http://www.cbo.gov/publication/43162