Senate rejects two small-biz bills

http://www.politico.com/news/stories/0712/78452.html

Senators rejected dueling Democratic and Republican small-business tax cut plans on Thursday, the latest futile effort to break the election-year gridlock that’s consumed Capitol Hill on issues dealing with jobs and the economy.

On a 53-44 vote, Republicans shot down the Democratic bill that would have provided a 10 percent income tax credits to small businesses that hire new workers or give current workers raises, as well as allow companies to quickly write off purchases on new equipment. Sixty votes were needed.

Two moderate Republicans with tough elections, Sens. Scott Brown of Massachusetts and Dean Heller of Nevada, crossed the aisle and voted with Democrats. Sen. Joe Manchin (D-W.Va.) joined Republicans. Democrats said their proposals, part of President Barack Obama’s “Startup America” initiative, would create nearly 1 million jobs.

The Republican plan, which was passed by the GOP-controlled House in April, failed on a 24-73 vote. It would provide a 20 percent tax cut for businesses with fewer than 500 workers but ran into a White House veto threat and fierce criticism from congressional Democrats who said the bill would benefit celebrities like Kim Kardashian and Paris Hilton and small hedge funds.

The bill was authored by House Majority Leader Eric Cantor (R-Va.), but Senate Majority Leader Harry Reid (D-Nev.) had actually put forward the proposal, prompting howls from Republicans that they were not allowed to offer amendments of their own.