With President Donald Trump set to sign a sweeping tax overhaul, Democrats are pushing to boost the number of small businesses in their states, which are now responsible for more than half of all jobs in the country.
The Hill article The House passed the Tax Cuts and Jobs Act, which would provide $1 trillion in tax cuts for individuals, businesses and families.
The bill also repeals a tax on carbon dioxide emissions and allows companies to bring back their offshore profits, as long as the businesses remain in the United States.
Democrats and Republicans alike are touting the bill as a boon to small businesses, who are seeing job losses as the U.S. economy slows.
But there’s a problem: While the bill would give tax cuts to individuals and businesses, it doesn’t give tax relief to all Americans.
The tax bill gives an average tax cut to the top 1 percent of earners, but only to people making $5 million or more.
But the average tax break for people making less than $25,000 is capped at $1 million.
And while the bill provides $1.2 trillion in new revenue over the next decade, it also allows the IRS to use the money to reduce taxes on the vast majority of taxpayers.
“The goal of the bill is to cut taxes on every American,” House Ways and Means Committee Chairman Kevin Brady (R-Texas) told The Hill in an interview.
“There are very few places where we have the ability to do that, and this is one of them.”
The bill does not, however, expand the tax code, which could benefit corporations, while making the rich pay even more.
“It is a massive loophole that has a huge impact on the economy,” Brady said.
“We want to make sure that the wealthiest Americans, and especially those who are in the highest tax brackets, pay their fair share of taxes.”
The White House has said the bill will benefit most businesses, but critics say the bill’s big winners are wealthy individuals who can bring back billions of dollars of their offshore earnings.
“While the bill does give small businesses the benefit of the doubt, it leaves a gaping hole that has to be plugged,” said Jim Manley, director of the Tax Policy Center.
The White and Democratic-controlled House are expected to finalize the bill before the end of the year.
The Republican-controlled Senate is expected to begin debating the bill on the same day, with a final vote expected in late January or early February.