Washington, D.C. - Congressman Charles B. Rangel deplored House Republicans for passing H.R. 9 - Small Business Tax Cut Act, which would give away an average of $58,800 to 125,000 millionaires and add $46 billion to the nation's deficit in 2013 alone.  This legislation, which passed 235-173 on a mostly party-line vote, has virtually no chance of passing in the Senate, and President Barack Obama has previously said he will veto the bill if it makes it to his desk.

"Republicans have made it clear that they are more interested in playing political games than working with Democrats to pass real legislation that supports small businesses and creates real jobs," said Rangel.  "My Republican Colleagues are using this tax giveaway like the proverbial carrot for millionaires and billionaires.  Even though they know it will never become law, they want to show special interest groups and the super-rich that they are willing to play ball."

One of the primary criticisms by House Democrats is that H.R. 9 does not require businesses to create jobs in order to receive the tax deduction. Instead it rewards companies that ship jobs overseas.  The Center on Budget and Policy Priorities said the bill "would provide windfall for the wealthy, not create jobs."  Bruce Bartlett, former Economic Advisor to President Ronald Reagan, stated "[it] is nothing more than an election year giveaway to a favored Republican constituency and should not be taken seriously.”

In contrast, Democrats have proposed tax cuts for small businesses, such as manufacturers, that create high-paying real jobs in the United States. Under one such plan, businesses that invest in property, machinery, equipment, and other job-creating assets could deduct 100% of the cost of capital in the first year of their investment.  Democrats have also voted to pass the "Buffett Rule," which ensures that millionaires and billionaires do not pay a lower tax rate than average American families.

"Small business owners play a vital role in revamping our national and local economies," said Rangel. "We have an obligation to give them every opportunity to innovate and grow."

In his ongoing efforts to help small business owners in his Manhattan Congressional District expand their enterprises, Rangel recently held an event in which he invited Administrator Karen Mills from the Small Business Administration, and Director David Hinson from the Department of Commerce's Minority Business Development Agency to speak about the various resources available to small business owners and entrepreneurs.