GoldieDulin12

A Republican proposal to give small businesses an extra 20 percent tax deduction may yield cuts for some multibillion-dollar law firms and other enterprises that create significant profits with few employees.

Republicans hope to release details of the bill during the week of March 19, said Laena Fallon, a spokeswoman for Representative Eric Cantor, the House majority leader. Cantor told House members in a memo last month his plan would let ?every? business with fewer than 500 employees deduct 20 percent of its profits.

THS

That approach would depart from restrictions in an earlier version. Legislation introduced when Republicans were campaigning to take over the House majority in 2010 would have prevented companies in health, law, finance, architecture and other industries from qualifying for the break.

Abandoning those limits would let professional sports teams, liquor stores and hedge funds including Renaissance Technologies LLC and Och-Ziff Capital Management Group LLC (OZM) claim the tax break.

?It?s never simple with tax policy,? said Representative Dave Camp, a Michigan Republican and chairman of the House Ways and Means Committee. Camp and Fallon said the latest version of the proposal hasn?t been completed.

?I don?t want to enumerate what that might be,? Camp said in a March 6 interview when asked what limits Republicans might include. ?One of the considerations you have to have as you look at any tax bill is how far-reaching it?s going to be.?