Ways & Means Approves Small Business Cut Act

The House Ways and Means Committee votes 21-14 to approve legislation that would give businesses with fewer than 500 employees a tax deduction of up to 20 percent of taxable income, clearing the way for the bill to move to the House floor. The Small Business Tax Cut Act (H.R. 9) was introduced by House Majority Leader Cantor and is being pushed as a way to give a temporary, one-year hiring incentive to businesses, though Democrats have criticized the measure as overly broad and too expensive since it was offered without any way to offset its $46 billion cost.