Small Business Tax Relief Act

The Small Business Tax Relief Act creates a graduated corporate tax rate for small businesses, lowering the rate to 18% for the first $400,000 of taxable income for corporations with total income under $5 million. It establishes special tax treatment for partners providing investment management services to partnerships, requiring that gains and losses from these services be treated as ordinary income or loss rather than capital gains or losses. The bill also increases the deduction for self-employed individuals with adjusted gross income under $400,000 from one-half to three-quarters of certain taxes. Additionally, it raises the excise tax on corporate stock repurchases from 1% to 1.5% for transactions after December 2024.