The White House is threatening to veto a small-business tax-cut bill, deeming it a $46 billion giveaway to the “most fortunate.”
A top priority of House Majority Leader Eric Cantor, Virginia Republican, the bill would give companies with fewer than 500 employees a targeted 20 percent tax break as a way to spur small-business investment and boost the economy.
The White House on Tuesday criticized the bill, citing analysis that found nearly half of the benefit from the bill would go to taxpayers making more than $1 million a year.
“The bill is not an effective way to incentivize small business investment and job creation,” the administration said in a lengthy statement. “If the President is presented with [the bill], his senior advisors would recommend that he veto the bill.”
The House is scheduled to take up and approve Mr. Cantor’s bill on Thursday, but the measure faces resistance in the Democrat-controlled Senate.
Before the veto threat, Mr. Cantor argued the bill would help create jobs and get the economy moving.
“We believe you ought to reduce taxes on small businesses to create jobs,” he said. “If we are going to get people back to work, we have got to help the ob engine that produces these jobs, which is small business.”