House OKs tax cut for most businesses
Dim future for 20 percent trim
WASHINGTON – Despite a veto threat from President Barack Obama, the Republican-led House approved a 20 percent tax cut for most companies intended to entice them to pick up the pace of hiring and, thus, boost the economy.
Critics said the tax cuts for companies with fewer than 500 employees would add $46 billion to the deficit and do little to create jobs. Obama and Democrats attacked the legislation as unfairly favoring wealthier small-business owners, celebrities and sports teams.
The bill, passed on a near-party-line vote of 235 to 173, has a dim future in the Senate, where Democrats have other business-tax measures in mind.
The showdown caps a week of politically charged votes on Capitol Hill as the parties offered competing visions for how to address the nation’s fiscal and economic issues heading into the November election.
At times, the floor debates sounded like a prolonged campaign ad as the parties sought to sway voters, particularly the sought-after independents not aligned with either party.
“We need to stop and think about what kind of country we want to be,” said House Majority Leader Eric Cantor, R-Va., the business bill’s author. “One with lower taxes, more growth and more jobs? Or do we want to be one of more government control?”
Democrats, though, said the 20 percent tax-cut measure comes as Republicans work to revamp Medicare and cut domestic programs, including the Meals on Wheels program for seniors.
“Where’s your conscience?” said Rep. Sander Levin of Michigan, the top Democrat on the tax committee. “This bill isn’t going anywhere. But it says everything about the majority’s priorities.”
The White House, threatening a veto, said almost half of the tax benefits from the bill would go to businesses with annual revenue of more than $1 million each. The legislation would cut 20 percent of a company’s taxable revenue for the 2012 tax year.