Small Business Income Deferral Act (H.R. 2284)

Introduced by Congressman Erik Paulsen (R-MN) on May 6th, 2009, the bill amends the Internal Revenue Code to allow individual taxpayers an exclusion from gross income for certain items of partnership and S corporation pass-thru income up to $250,000 ($500,000 for married couples filing joint returns). The bill would:

• Give small businesses the ability to defer taxes on any business income they reinvest in their partnership or S corporation; and
• Ensure that small business owners are taxed only on the profits taken out of their business.

Click here to read the full text of the legislation

Click here to read Rep. Paulsenbs letter to President Obama about H.R. 2284