House Republicans this week plan to vote on a bill proposed that Majority Leader Eric Cantor (R-VA) that is supposedly aimed at “small businesses,” but in reality would cut taxes for millionaires. Due to its non-existent targeting to actual small businesses, the cut would benefit hedge fund managers, wealthy lawyers, professional sports teams, and Oprah’s production company.
Despite all this, Cantor is still “puzzled” that President Obama would threaten to veto the bill, which he did yesterday. On CNBC this morning, Cantor accused Obama of not caring about small businesses due to his opposition to the tax giveaway:
Well, listen, the President’s now issued a veto threat against the bill, which is kind of puzzling, because the President has continued to say he’s for small business, he’s for the middle class, and yet he’s now denying any help to small businesses, who frankly could use a 20 percent tax cut.
Cantor’s tax boondoggle would cost $46 billion and gives millionaires an average tax cut of $45,000. Meanwhile, for actual small businesses that can’t afford a platoon of accountants and lawyers, the tax cut will add another layer of complexity to the tax code. The IRS says that the tax cut would increase tax compliance costs and require businesses to perform additional analyses.