Noem co-sponsors tax cut bill for firms; Obama vows vetoRepublicans claim the bill, if passed, would lower taxes on the adjusted gross income of as many as 22 million small businesses by as much as 20 percent for one year.
By: Tom Lawrence, The Daily Republic
Rep. Kristi Noem is a co-sponsor of a bill that proposes a tax cut for small businesses and will come before the U.S. House of Representatives today.
The bill, H.R. 9, termed The Small Business Tax Cut Act of 2012, is sponsored by House Majority Leader Eric Cantor, R-Va. Noem is one of 42 co-sponsors for the bill.
Republicans claim the bill, if passed, would lower taxes on the adjusted gross income of as many as 22 million small businesses by as much as 20 percent for one year.
Noem is optimistic about the bill’s chances, according to her spokeswoman, Andrea McCarthy.
“She expects it to pass,” McCarthy said. “She will be voting yes for this legislation that will incentivize small businesses in South Dakota and around the country to reinvest in their business.”
Noem plans to speak in favor of the bill, according to her spokeswoman.
In a release from her office, Noem said the bill would benefit 20,832 small businesses — those with 500 or fewer employees — in South Dakota.
There are also 51,306 firms that are classified as “sole proprietorships,” primarily self-employed businesses. Many of these companies would see a boost from this tax cut, she said.
President Obama will veto the bill if it passes, his staff has said. They claim the bill would increase the deficit by $46 billion and wrongly include some companies that are not in need of tax breaks.