Small Business Tax Cut Act
Latest action · Apr 23, 2012 Received in the Senate and Read twice and referred to the Committee on Finance.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedMar 21, 2012
- Passed HouseApr 19, 2012
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
(This measure has not been amended since it was reported to the House on April 10, 2012. The summary of that version is repeated here.)
Small Business Tax Cut Act - Amends the Internal Revenue Code to allow a qualified small business a tax deduction equal to 20% of the lesser of qualified domestic business income or taxable income. Defines: (1) "qualified small business" as any employer engaged in a trade or business if such employer had fewer than 500 full-time employees in either 2010 or 2011; and (2) "qualified domestic business income" as an amount equal to the excess (if any) of the taxpayer's domestic business gross receipts (i.e., gross receipts effectively connected with a trade or business within the United States) for a taxable year over the sum of the cost of goods sold allocable to such receipts and other expenses, losses, or deductions properly allocable to such receipts.
Limits the amount of such deduction to 50% of the greater of: (1) the taxpayer's W-2 wages (payroll) paid to non-owners of the taxpayer's business; or (2) the sum of the W-2 wages paid to individuals who are non-owner family members of direct owners (i.e., stockholders of the business), plus any W-2 wages paid to direct owners who have an ownership interest in the business of 10% or less.
Directs the Secretary of the Treasury to prescribe regulations to carry out this Act, including regulations to prevent a taxpayer that reorganizes from being treated as a qualified small business if such taxpayer would not have been treated as a qualified small business prior to such reorganization.
Recorded votes 3
Newest first. Open one to see how every member voted.
| Roll call | Question | Result | Date |
|---|---|---|---|
| House 177 | On Passage | Passed235–173 | Apr 19, 2012 |
| House 176 | On Motion to Recommit with Instructions | Failed179–229 | Apr 19, 2012 |
| House 175 | On Agreeing to the Amendment | Failed175–236 | Apr 19, 2012 |
Cosponsors 42
Members who signed on, in the order they did. Signatures ran from Mar 22, 2012 to Apr 10, 2012.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| R-IL | Aaron Schock | Mar 22, 2012 | |
| R-MI | Candice S. Miller | Mar 22, 2012 | |
| R-MI | Dave Camp | Mar 22, 2012 | |
| R-NH | Frank C. Guinta | Mar 22, 2012 | |
| R-IL | Judy Biggert | Mar 22, 2012 | |
| R-TX | Michael T. McCaul | Mar 22, 2012 | |
| R-OH | Robert E. Latta | Mar 22, 2012 | |
| R-IL | Robert T. Schilling | Mar 22, 2012 | |
| R-MO | Sam Graves | Mar 22, 2012 | |
| R-NY | Tom Reed | Mar 22, 2012 | |
| R-AZ | Trent Franks | Mar 22, 2012 | |
| R-IL | Adam Kinzinger | Mar 26, 2012 | |
| R-FL | David Rivera | Mar 26, 2012 | |
| R-CA | Elton Gallegly | Mar 26, 2012 | |
| R-TX | Francisco "Quico" Canseco | Mar 26, 2012 |
Committees 2
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| House | Ways and Means Committee | Referred Mar 21, 2012Markup Mar 28, 2012Reported Apr 10, 2012 |
| Senate | Finance Committee | Referred Apr 23, 2012 |
Actions 19
Everything that happened, newest first.
- Apr 23, 2012Received in the Senate and Read twice and referred to the Committee on Finance.
- Apr 19, 2012Rule H. Res. 620 passed House.
- Apr 19, 2012Considered under the provisions of rule H. Res. 620. (consideration: CR H1981-1989, H1990-2010)
- Apr 19, 2012Rule provides for consideration of H.R. 9 with 1 hour of general debate. Motion to recommit with or without instructions allowed. Measure will be considered read. A specified amendment is in order. The resolution waives all points of order against consideration of the bill. The resolution provides that the amendment in the nature of a substitute, now printed in the bill, shall be considered as adopted. The resolutions waives all points of order against provisions of the bill, as amended. The resolution makes in order the amendment in the nature of a substitute, for 20 minutes of debate, which shall not be subject to amendment.
- Apr 19, 2012DEBATE - Pursuant to the provisions of H.Res. 620, as amended, the House proceeded with 70 minutes of debate on H.R. 9.
- Apr 19, 2012DEBATE - Pursuant to the provisions of H. Res. 620, as amended, the House proceeded with 25 minutes of debate on the Levin substitute amendment.
- Apr 19, 2012Mr. Deutch moved to recommit with instructions to Ways and Means. (consideration: CR H2008-2010; text: CR H2008)
- Apr 19, 2012DEBATE - The House proceeded with 10 minutes of debate on the Deutch motion to recommit with instructions. The instructions contained in the motion seek to report the same back to the House forthwith with amendments to prevent the tax deduction from allowing companies to ship jobs overseas. It would also prevent the tax deduction from being used on income from prostitution, pornography, drug trafficking, lobbying, golf courses that discriminate based on sex or race, or by taxpayers who violate Iran sanctions. Further, any Member of Congress taking the deduction would have to disclose the deduction amount and type of business income from which it came.
- Apr 19, 2012The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H2009)
- Apr 19, 2012On motion to recommit with instructions Failed by recorded vote: 179 - 229 (Roll no. 176). (consideration: CR H2009-2010)
- Apr 19, 2012Passed/agreed to in House: On passage Passed by the Yeas and Nays: 235 - 173, 1 Present (Roll no. 177). (text: CR H1990-1991)
- Apr 19, 2012Motion to reconsider laid on the table Agreed to without objection.
- Apr 17, 2012Rules Committee Resolution H. Res. 620 Reported to House. Rule provides for consideration of H.R. 9 with 1 hour of general debate. Motion to recommit with or without instructions allowed. Measure will be considered read. A specified amendment is in order. The resolution waives all points of order against consideration of the bill. The resolution provides that the amendment in the nature of a substitute, now printed in the bill, shall be considered as adopted. The resolutions waives all points of order against provisions of the bill, as amended. The resolution makes in order the amendment in the nature of a substitute, for 20 minutes of debate, which shall not be subject to amendment.
- Apr 10, 2012Reported (Amended) by the Committee on Ways and Means. H. Rept. 112-425.
- Apr 10, 2012Placed on the Union Calendar, Calendar No. 292.
- Mar 28, 2012Committee Consideration and Mark-up Session Held.
- Mar 28, 2012Ordered to be Reported (Amended) by the Yeas and Nays: 21 - 14.
- Mar 21, 2012Introduced in House
- Mar 21, 2012Referred to the House Committee on Ways and Means.
In the Congressional Record 11
Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.
| Where | In the Record | Members | Date |
|---|---|---|---|
| Senate | Debate and remarks S6419 | Harry Reid D-NV, Jon Kyl R-AZ | Sep 19, 2012 |
| Senate | Debate and remarks S5845 | Chuck Grassley R-IA, Patty Murray D-WA | Aug 1, 2012 |
| Senate | Debate and remarks S5451 | Max Baucus D-MT, Mitch McConnell R-KY | Jul 26, 2012 |
| Senate | Debate and remarks S4921 | Jack Reed D-RI | Jul 12, 2012 |
| Senate | Debate and remarks S4812 | Max Baucus D-MT | Jul 10, 2012 |
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Committee report
Congressional Budget Office cost estimate
- Apr 18, 2012H.R. 9, Small Business Tax Cut ActH.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.
Constitutional authority
The sponsor’s statement, as printed in the page H1497.
Printed hearings 1
Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.
| Number | Hearing | Committee | Held |
|---|---|---|---|
| — | SUPPLEMENTAL SECURITY INCOME BENEFITS FOR CHILDREN185 pages | Ways and Means Committee | Oct 27, 2011 |
Amendments 2
Amendments offered to this bill.
| Amendment | Description | Offered by | Status |
|---|---|---|---|
| HAmdt 1017 | An amendment in the nature of a substitute made in order as original text for the purpose of further amendment by H.Res. 620. | Rules Committee | House amendment offered |
| HAmdt 1018 | Amendment in the nature of a substitute. | Sander M. Levin D-MI | On agreeing to the Levin amendment (A002) Failed by the Yeas and Nays: 175 - 236 (Roll no. 175). |
Related bills 1
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HRES 620 | Providing for consideration of the bill (H.R. 9) to amend the Internal Revenue Code of 1986 to provide a deduction for domestic business income of qualified small businesses. | Procedurally related | Apr 19, 2012 |
Titles 4
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- To amend the Internal Revenue Code of 1986 to provide a deduction for domestic business income of qualified small businesses.
- Short Titles as Introduced
- Small Business Tax Cut Act
- Short Titles as Reported to House
- Small Business Tax Cut Act
- Short Titles as Passed House
- Small Business Tax Cut Act
Subjects
Assigned by the Library of Congress. Policy area: Taxation.
Text 4
Each version as it was printed, newest first.
- Apr 23, 2012Referred in Senate
- Apr 19, 2012Engrossed in House
- Apr 10, 2012Reported in House
- Mar 21, 2012Introduced in House
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.
