Why the Small Business Tax Cut Act is Doomed to Fail

Today the House approved the Small Business Tax Cut Act , which would allow small businesses who employ fewer than 500 people to deduct up to 20 percent of their profits this year. The bill passed 235-173 in the House and was sponsored by House Republican, Eric Cantor, and would result in a 46 billion dollar cut in government tax revenue.

House Democrats voted unanimously against the bill, pointing out that the tax cut goes against the current Bi-Partisan aim of simplifying the tax code, and eliminating tax shelters and loopholes. Democrats fear that the tax cut is too simplistic and permits companies who lay off workers and companies which outsource to take advantage of the tax cut. Joseph Crowley (D-NY) voiced his opinion saying that, "perhaps most egregiously the tax cut would subsidize the destruction of American jobs by incentivizing the off shoring of U.S jobs."

 However, the bill and its surrounding criticism seems a moot point. The bill is expected to be shot down and defeated in the Senate, and the Presidential administration has in fact threatened to veto the bill if it passes both the House and the Senate. Once again, the American populace suffers from election year politics, and the political posturing that goes with it. At the end of the day, Republicans and Democrats need to convince the American people of their beliefs with substantive evidence in order to get re-elected. Despite the fact the Congress is locked in a legislative stale mate, both parties are playing fast ball politics by promoting bills that are doomed to die in either the House or the Senate. Unfortunately, the failure of both the House and the Senate to pass any substantive legislation has culminated in the failure to create American jobs.