House to vote on small business tax cut plan Days after the Senate rejected a plan to impose higher taxes on wealthy Americans, the House Thursday plans to vote on a bill that would extend tax cuts to businesses with fewer than 500 employees. House Majority Leader Eric Cantor (R-Va.). (Brendan Hoffman - GETTY IMAGES) Both parties believe the House Republican-backed measure is a perfect foil to the Senate's attempt to pass the so-called "Buffett Rule," with Republicans believing their vote on a $46 billion tax cut will demonstrate their eagerness to cut taxes and encourage economic growth for struggling small business owners. Democrats, however, say the measure will provide new tax relief to at least some higher-income Americans, particularly business owners who are already performing well. House Majority Leader Eric Cantor (R-Va.), who has aggressively championed the measure in recent days with a series of high-profile media events, said Wednesday that his Small Business Tax Cut Act would grant firms with fewer than 500 employees tax deductions up to 20 percent of their business income. "Our 20 percent small business tax cut goes straight to the bottom line so small business owners can retain more capital, invest in their businesses and create more jobs," Cantor said, citing studies suggesting the tax cuts could help create 100,000 more jobs annually. The measure is expected to pass with a mostly party-line margin, but is all-but certain never to be considered by the Senate and President Obama has said he will veto the bill if it passes. The White House has said the measure is "not focused on cutting taxes for small businesses, but instead would provide tax cuts to the most fortunate." "The proposal is a giveaway that will cost $46 billion and could in fact lead to delays and reductions in investment and hiring," the White House said this week. Despite the opposition, congressional Republicans remain committed to introducing modest proposals to help bolster the economy regardless of whether they earn bipartisan support, in hopes of demonstrating to voters that they have serious ideas for economic development that are being thwarted by Democrats. But Democrats have been just as eager for the fight, calling it a tax cut that would benefit well-heeled celebrities, including Kim Kardashian and Oprah Winfrey, who operate companies that employ fewer than 500 people. "It's another huge Republican giveaway to big corporations and the wealthiest Americans, instead of being targeted to the middle class," said Adam Jentleson, a spokesman for Senate Majority Leader Harry M. Reid (D-Nev.). "Senate Democrats" tax cut plan is targeted to actually help small businesses." The Democratic plan, set to be unveiled and voted on in the coming weeks, is expected to provide more narrow tax relief only for businesses that hire more workers. Asked Wednesday why Republicans wanted to help firms with up to 500 employees, or why they didn't limit the tax break to companies with a certain level of income, Cantor insisted his bill's definition of "small business" matches the definition used by the Small Business Administration. "No more complicated than that," he told reporters, adding later that "If you look at the numbers, if you look at those who are benefiting, overwhelmingly the beneficiaries are those in the middle class." Conservative publisher Steve Forbes, who has famously advocated for a flat tax, voiced support for the measure in a conference call hosted by Cantor. "Not only does it allow smaller businesses to keep what they earn, it reduces the price of risk-taking, reduces the price of achieving success, which induces people to raise more capital and put more capital to work," Forbes said. "This is an important step and should clear the hurdles this year," he added. And Cantor called Obama's vow to veto the bill "puzzling" since the White House has signaled support for helping small businesses.