Washington, D.C. –Today, U.S. Representative Chip Cravaack (MN) released the following statement after the House voted to pass H.R. 9, the Small Business Tax Cut Act, by a vote of 235-173:

 “This common sense, pro-growth legislation would lower tax rates on Minnesota small businesses, from mom and pop stores to small manufacturing and service companies, allowing them to invest, expand, and hire workers.  While Minnesota is home to over 116,000 small businesses, reducing the tax burden felt by these job creators will jumpstart our lagging economy by giving more than 22 million small businesses in the U.S. a much-needed infusion of capital,” said Rep. Cravaack.

Specifically, the Small Business Tax Cut Act will allow small businesses with fewer than 500 employees to take a tax deduction equal to 20% of their active business income.  The Small Business Administration terms a “small business” as that which employers fewer than 500 employees.  Importantly, the Small Business Administration shows small businesses generate over 60% of new jobs in the U.S.

“High taxes have prevented RC from accumulating enough capital to grow.  This bill will ease our tax burden, allowing us to update machinery, hire workers, and provide higher quality products to our clients.  This is common sense,” said Rick Christenson, owner of RC Fabricators in Hibbing, MN.

Additionally, the Joint Committee on Taxation estimates that the Small Business Tax Cut Act will provide $45.950 billion in tax relief for small businesses.

Rep. Cravaack serves on the Transportation and Infrastructure Committee – where he is Vice Chair of the Aviation Subcommittee – the Homeland Security Committee, and the Science, Space and Technology Committee. The 8th Congressional District covers 18 counties in Northeast Minnesota.

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