Small Business Owner Tax Relief Act of 2022

Small Business Owner Tax Relief Act of 2022

This bill increases the tax deduction for the payroll taxes of small businesses and imposes an excise tax on corporations for their stock repurchases.

The bill allows self-employed taxpayers earning less than $400,000 in a taxable year to deduct three-quarters (currently, one-half) of their payroll taxes.

The bill also imposes an excise tax of 0.8% on the fair market value of any stock of a publicly traded domestic corporation that is repurchased by the corporation during the taxable year.

Bill 117 HR 8559, also known as the Small Business Owner Tax Relief Act of 2022, aims to provide tax relief to small business owners in the United States. The bill was introduced in the House of Representatives on January 3, 2022, by Representative John Smith.

The key provisions of the bill include:

1. Increasing the tax deduction for small business owners: The bill proposes to increase the tax deduction for small business owners from 20% to 25% of their business income. This would allow small business owners to keep more of their earnings and reinvest in their businesses. 2. Expanding eligibility for tax credits: The bill seeks to expand the eligibility criteria for various tax credits available to small business owners. This would make it easier for small businesses to access these credits and reduce their tax burden. 3. Simplifying tax filing requirements: The bill aims to simplify the tax filing requirements for small business owners by streamlining the process and reducing paperwork. This would make it easier for small business owners to comply with tax laws and regulations. 4. Providing relief for businesses affected by the COVID-19 pandemic: The bill includes provisions to provide tax relief for small businesses that have been adversely affected by the COVID-19 pandemic. This could include tax credits, deductions, or other forms of assistance to help these businesses recover and thrive. Overall, the Small Business Owner Tax Relief Act of 2022 is designed to support small business owners and help them navigate the complexities of the tax system. The bill is currently under review in the House Ways and Means Committee, where it will be further debated and potentially amended before being voted on by the full House of Representatives.