Conservatives Criticize GOP’s $1 Million-Per-Job Business Tax Cut Bill

[ProSense]

Conservatives Criticize GOP’s $1 Million-Per-Job Business Tax Cut Bill

Sahil Kapur

Billed as an effort to aid small businesses, House Republicans passed a broad business tax cut Thursday afternoon, overcoming fire from both the left and right about its meager job-creation potential.

Majority Leader Eric Cantor spearheaded the measure, which passed 235-173, and would allow businesses with fewer than 500 employees to deduct 20 percent of their income, at a revenue cost of $46 billion next year alone. Senate Democrats have rejected it and the White House has threatened a veto.

That’s not simply to deny Cantor and the GOP an election-year victory. According to an outside analysis posted on Cantor’s website, the expensive tax cut would create some 40,000 jobs in one year. As NPR has calculated, that’s upwards of $1 million per job created.

Cantor’s office pointed out that the analysis also says the bill would create more than 100,000 jobs annually in the out-years. But the tax break is written to sunset after one year, leaving open the question of how it would impact hiring after it expires.

It’s that sort of budgeting that has incited conservative criticism. The Wall Street Journal editorial board called the bill a “gimmick” and decreed the 500-employee cutoff as “arbitrary and political — a ploy to let Republicans say they aren’t cutting taxes for big business.”

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http://tpmdc.talkingpointsmemo.com/2012/04/eric-cantor-tax-cut-jobs.php?ref=fpa

House will vote today on tax cuts for NASCAR/NFL team owners

by Joan McCarter

House Majority Leader Eric Cantor's H.R. 9, the Small Business Tax Cut, is up for a vote today, with Republicans cleverly thinking they can make Democrats look bad by voting against a tax cut for "small business." (Deficit be damned. The bill would cost $46 billion.) The bill would provide a 20 percent tax cut for business with fewer than 500 employees.

So, what kind of businesses have fewer than 500 employees?

• Professional sports franchises, such as the Los Angeles Dodgers, which were recently sold for $2 billion
  
  
• Donald Trump’s Trump Tower Sales & Leasing
  
  
• Paris Hilton Entertainment, Inc.

Who else? Mitt Romney's good friends, those owners of NFL and NASCAR teams, would probably appreciate that tax break. So would Rob Rom Enterprises, the Romney corporation that has made Ann Romney's love for the sport of dressage a healthy tax write-off, since it lost $77,000 in 2010.

In fact, half of Cantor's tax breaks would go to millionaires because of the way the bill is structured, with tax deductions tied to business income being the majority of the cuts. The huge majority of small business—76 percent—make less than $200,000 a year and would only get 16 percent of the benefits from this bill. The four percent with incomes over $1 million, like Romney's NASCAR and NFL team-owning buddies, would be the real beneficiaries. As usual.

Cantor could have targeted these cuts to truly struggling small business owners, but where's the fun (and campaign contributions) in that?

http://www.dailykos.com/story/2012/04/19/1084660/-House-will-vote-today-on-tax-cuts-for-NASCAR-NFL-team-owners-

Remember when Republicans attacked the stimulus, bogusly claiming that it cost more than $270,000 per job?

That was then, now it's perfectly okay to give millionaires tax cuts disguised as helping small businesses to the tune of $1 million per job.