See How Your Politicians Voted
Title: Income Tax Deduction for Small Businesses
Vote Smart's Synopsis:
Vote to pass a bill that establishes an income tax deduction of 20 percent for small businesses, beginning in the 2012 tax year.
- Authorizes a qualified small business to claim a tax deduction of 20 percent of the lesser of the following (Sec. 2):
- Qualified domestic business income for the taxable year; or
- Taxable income for the taxable year.
- Defines a “qualified small business” as any employer engaged in a trade or business who employs fewer than 500 full-time employees (Sec. 2).
- Defines “qualified domestic business income” as the businesses' gross receipts for the taxable year, minus the cost of any goods that were sold, business expenses, and losses (Sec. 2).
- Limits the deduction to 50 percent of the greater of the following (Sec. 2):
- The wages paid to employees who are not owners of the business; or
- The sum of the wages paid to non-owner family members and owners of less than 10 percent of the business' stock, capital or profits.