Small Business Tax Relief Act
Rep. Craig Introduces Bill to Lower Small Business Taxes and Close Carried Interest Loophole
This bill is currently in the early stages of the legislative process and is being reviewed by the House Committee on Ways and Means. It is actively moving forward as it waits for the committee to decide on the next steps. There are no upcoming votes scheduled at this time.
Legislative Progress
While tax cuts for small businesses are popular, the plan to raise taxes on investment managers and stock buybacks usually faces strong opposition in a divided Congress.
Key Points
Impact Analysis
Personal Impact
Life & Work
Self-employed individuals earning under $400,000 a year, including gig workers who file as self-employed, would be able to deduct 75% of their self-employment taxes instead of the current 50%. This reduces their taxable income and lowers their overall tax bill. For a gig worker earning $50,000, this would mean roughly an extra $500-600 in deductions per year.
“In the case of an individual with an adjusted gross income of less than $400,000 for the taxable year, paragraph (1) shall be applied by substituting `three quarters of the taxes imposed' for `one-half of the taxes imposed'.”
Programs
Activities
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articles
Centrist and Progressive Democrats Prepare for a Clash in Minnesota
As the DFL primary heats up, Rep. Angie Craig is touting her 'Small Business Tax Relief Act' as a key pillar of her economic platform. The bill seeks to provide a 75% deduction for self-employment taxes for individuals making less than $400,000 annually.
Craig Introduces Bill to Cut Taxes for Small Business Owners
Rep. Angie Craig reintroduced the Small Business Tax Relief Act during Small Business Week. The legislation would lower the corporate tax rate to 18% for small businesses with less than $5 million in income and expand deductions for the self-employed.
Source Information
Document Type
Congressional Bill
Official Title
Small Business Tax Relief Act
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.