Congressman Jim Matheson voted for legislation that provides a tax cut this year to Utah small businesses with fewer than 500 employees. The Small Business Tax Cut Act –H.R. 9—passed the House Thursday by a vote of 235-173.
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“The current tax code is a disincentive for small businesses to grow and add jobs,” said Matheson. “Under this measure, Utah small businesses will be able to retain more capital and invest more in their business. It’s small businesses that have generated the majority of new jobs over the past 15 years.”
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Murray Chamber of Commerce Director Scott Baker said, “I applaud Rep. Matheson’s efforts on H.R. 9 to reduce the tax burden on small businesses. This will allow them to invest in their equipment, inventory and employees.”
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Matheson said the measure allows small businesses—regardless of whether they pay taxes at the corporate or individual level—to deduct 20 percent of their income from taxes, up to 50 percent of their W-2 wages. As of 2009, Utah had 56,000 small businesses with between 1 and 500 employees. The nonpartisan Joint Committee on Taxation estimates that the Small Business Tax Cut Act will benefit more than 22 million small business employers across the U.S., reducing their taxes by nearly $46 billion.
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Matheson said the bill is supported by the Associated General Contractors, the Independent Electrical Contractors, the Small Business and Entrepreneurship Council and the American Truckers Association, among others.