You know, I was just thinking that millionaires needed another tax cut!
Earlier today ThinkProgress reported that the House Ways and Means Committee is expected to approve a proposal by House Majority Leader Eric Cantor (R-VA) that is misleadingly entitled the Small Business Tax Cut Act.
People who have read the bill and not just its title, however, have noted that it is extremely poorly targeted at small businesses. It is, in fact, just another tax cut for rich people. Among the biggest beneficiaries would be the owners of extremely profitable businesses like Oprah Winfrey’s production company and professional sports teams like theSuper Bowl champion New York Giants, as well as highly paid professionals like lawyers, lobbyists, doctors, and consultants.
The Tax Policy Center has now estimated who benefits from Cantor’s bill. Among TPC’sfindings:
– The top 1 percent would receive an average tax cut that is 1000 times bigger than the average tax cut for people in the middle quintile ($23 vs. $23,000). The top 0.1 percent would receive an average tax cut of more than $130,000.
– Half of the tax benefits would go to millionaires, who comprise less than one-half of one percent of all taxpayers and only 4 percent of actual small business owners according to a recent Treasury study. Millionaires, on average, would get a tax cut of $45,000 — almost as much as median household income in 2010.
– Business owners with annual income of $200,000 or less — who comprise more than 75 percent of small business owners — would receive only 16 percent of the benefit from Cantor’s bill.