At today’s markup of H.R. 9, Ways and Means Committee Member Xavier Becerra (D-CA) asked Joint Committee on Taxation Chief of Staff Thomas Barthold what types of businesses would benefit under the proposal to give an across-the-board 20 percent tax cut to businesses, regardless of what they do, whether they hire people, lay people off or send jobs overseas. The exchange illustrated the degree to which the bill is untargeted. Indeed, two previous versions of the bill written by Republicans had specifically excluded a broad swath of industries that Republicans have now decided to make eligible for the tax break, which costs $46 billion for one year.
During the markup, Republicans also unanimously opposed an amendment offered by Committee Member Joe Crowley (D-NY) that would deny the tax cut to any business that in 2012 fires employees in the United States and hires workers overseas.
BECERRA: My understanding is that Larry Flynt Productions has about 117 employees … would they also qualify for that small business tax cut?
BARTHOLD: … If they are less than 500, yes.
BECERRA: So Paris Hilton Entertainment, which has five employees and is based in Beverly Hills … they qualify for that small business tax cut?
BARTHOLD: Yes they would, sir.
BECERRA: Is there a requirement that you create jobs?
BARTHOLD: There’s no requirement on the result of the tax relief.
BECERRA: So you don’t have to create a job to get the 20% tax cut?
BARTHOLD: That is correct, sir.
BECERRA: What if you fired an employee? Can you still get a tax cut?
BARTHOLD: The simple answer is yes.
BECERRA: What if a company fires an employee in the United States and lays off an American worker and then hires people aborad by outsourcing that job, could that company still qualify for that tax cut?
BARTHOLD: They could still qualify…
BECERRA: Thank you very much, Mr. Barthold.
