A Republican bill with 11 Republican cosponsors · See all 11 cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The ``Small Business Tax Cut Act'' aims to amend the Internal Revenue Code of 1986. It increases the deduction for qualified business income from 20 percent to 23 percent. The bill also modifies how limitations are determined based on a taxpayer's taxable income. Additionally, it expands the deduction to include certain interest dividends from qualified business development companies. Finally, the act modifies inflation adjustments and sets an effective date for taxable years beginning after December 31, 2026.
Yes· 3 of 12
- Scored +6
Would business owners be better off under this?
The core purpose of the bill is to increase the tax deduction for business income.
- Scored +6
Does this make it easier to run a small business?
The act specifically targets and increases deductions for qualified business income.
- Scored +5
Does this cut taxes for small businesses?
The increase in the deduction from 20 percent to 23 percent directly lowers the tax burden for qualified businesses.
The opposite
- Scored -2
Does this reduce what the federal government owes?
Increasing tax deductions generally reduces federal revenue, which could increase the deficit.
- Scored -1
Does this make the government pay for what it commits to?
The tax cut may negatively impact long-term fiscal health by reducing revenue.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Tax Deduction for Businesses: The bill increases the deduction for qualified business income from 20 percent to 23 percent, which provides a larger deduction for qualifying entities (Section 2(a)).
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Benefits for Business Development Company Shareholders: The deduction for qualified business income would now apply to ``qualified BDC interest dividends,'' which are dividends from an electing business development company attributable to net interest income properly allocable to a qualified trade or business (Section 2(c)).
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Exceptions for Lower Income Taxpayers: For taxpayers whose taxable income does not exceed the threshold amount, certain limitations and treatment regarding specified service trades or businesses are modified (Section 2(b)(1)(A)).
Potential Negative Impacts for People
- Phase-in of Limitations for Higher Income Taxpayers: Taxpayers whose taxable income exceeds the threshold amount may face a phase-in of limitations based on their excess income (Section 2(b)(1)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would business owners be better off under this? — The core purpose of the bill is to increase the tax deduction for business income. Would people with substantial wealth be better off under this? — The expanded deduction for BDC interest dividends benefits larger-scale investors. Would middle-income households be better off under this? — The increased deduction provides tax relief that may benefit middle-class entrepreneurs. Would high-income households be better off under this? — The bill benefits high earners through expanded deductions, though phase-in limitations apply. Would households on low incomes be better off under this? — The bill provides some relief for lower-income business owners through an exception from certain limitations. Would the very wealthiest people be better off under this? — The benefit is primarily targeted at qualified business income, which may not include the highest tier of wealth.
- Economy And Finance
- Does this make it easier to run a small business? — The act specifically targets and increases deductions for qualified business income. Does this cut taxes for small businesses? — The increase in the deduction from 20 percent to 23 percent directly lowers the tax burden for qualified businesses. Does this cut taxes for middle-income families? — The bill increases the qualified business income deduction, which benefits taxpayers below the income threshold. Is this likely to grow the economy? — Tax incentives for businesses are intended to stimulate broader economic activity. Is this likely to create jobs? — Lower taxes on business income can marginally incentivize job growth, though direct links are not specified. Does this reduce what the federal government owes? — Increasing tax deductions generally reduces federal revenue, which could increase the deficit. Does this make the government pay for what it commits to? — The tax cut may negatively impact long-term fiscal health by reducing revenue.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — Increased deductions for lower-income business owners may slightly assist in poverty reduction.
- 8/17/2026
- 1 Cosponsor added.
- 7/14/2026
- 1 Cosponsor added.
- 7/13/2026
- 1 Cosponsor added.
- 6/9/2026
- 1 Cosponsor added.
- 5/22/2026
- 1 Cosponsor added.
- 4/21/2026
- Referred to the House Committee on Ways and Means.
- 6 Cosponsors added.
- Introduced in House
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Mike CareyRepublican · Ohio
Michelle FischbachRepublican · Minnesota
Mike FloodRepublican · Nebraska
Clay FullerRepublican · Georgia
Daniel MeuserRepublican · Pennsylvania
Carol MillerRepublican · West Virginia
Blake MooreRepublican · Utah
Ryan MackenzieRepublican · Pennsylvania
Michael RulliRepublican · Ohio
W. SteubeRepublican · Florida
Claudia TenneyRepublican · New York