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Tax Relief for Small Businesses and Higher Taxes on Investment Managers.

This Act introduces a lower corporate tax rate for small businesses to encourage growth and investment. Crucially, it closes the "carried interest loophole," reclassifying certain capital gains earned by investment managers as ordinary income, resulting in higher taxes for high-earners in finance. Furthermore, lower-income self-employed individuals will benefit from an increased deduction for self-employment taxes.
Key points
Small corporations (up to $5 million taxable income) will pay a reduced rate of 18% on the first $400,000 of income.
Investment managers' "carried interest" gains will be taxed as ordinary income, significantly increasing their tax burden.
Self-employed individuals earning less than $400,000 AGI can deduct 75% (up from 50%) of their self-employment taxes.
The excise tax on corporate stock repurchases is increased from 1% to 1.5%.
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Additional Information
Print number: 118_HR_8201
Sponsor: Rep. Craig, Angie [D-MN-2]
Process start date: 2024-05-01
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Tax Relief Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8201.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-05-01.

What are the main provisions?

Key points include:

  • Small corporations (up to $5 million taxable income) will pay a reduced rate of 18% on the first $400,000 of income.
  • Investment managers' "carried interest" gains will be taxed as ordinary income, significantly increasing their tax burden.
  • Self-employed individuals earning less than $400,000 AGI can deduct 75% (up from 50%) of their self-employment taxes.
  • The excise tax on corporate stock repurchases is increased from 1% to 1.5%.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Craig, Angie [D-MN-2].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Economy