Last week a press release from Governor Fallin advertised that she was participating in the “Bring Small Businesses Back Bus Tour” when it came to Oklahoma City. This tour is sponsored by the “Job Creators Network”, an association of corporate leaders started by the former presidential candidate Herman Cain and one of the founders of Home Depot. Governor Fallin’s press release especially focused on promoting H.R. 5374, a proposal by Illinois Republican Congressman Randy Hultgren that he calls the “Bring Small Business Back Tax Reform Act.”
Rep. Hultgren’s legislation would enact a large tax cut for “pass-through income” — the term for business income that is reported on the personal tax returns of the business owners. Business owners typically choose to pass through this income so they can pay a lower personal income tax rate than they would if it was taxed as normal business income. It’s already a lucrative tax break that is estimated to reduce federal tax revenues by more than $100 billion per year.
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