Bills · HR 3275
IN COMMITTEE· 119TH CONGRESS
House BillHR 3275Taxation
Small Business Tax Relief Act
INTRO MAY 8· LAST ACTION MAY 8
READING
34MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it addresses two distinct areas of tax policy that impact economic fairness and growth. The proposed tax cut for small businesses could free up capital for these companies to invest, hire more employees, or expand operations, potentially stimulating local economies. This could lead to more jobs and economic stability in communities across the country.
Simultaneously, the changes to 'carried interest' taxation aim to ensure that high-earning investment managers pay similar tax rates on their compensation as other professionals. If passed, this could increase government tax revenue and is seen by some as making the tax system more equitable. If it doesn't pass, small businesses would continue to pay the current corporate tax rate, and carried interest would largely continue to be taxed at capital gains rates, meaning less tax revenue and a continuation of the current tax structure for investment professionals.
KEY PROVISIONS
4AI-extractedPROVISION 01
Establishes a graduated corporate tax rate for small businesses with taxable income up to $5 million.
This provision provides a direct tax reduction for smaller corporations, potentially freeing up funds for growth and investment.
PROVISION 02
Taxes net capital gains from 'investment services partnership interests' as ordinary income.
This aims to close the 'carried interest loophole,' reclassifying certain investment profits as higher-taxed ordinary income.
PROVISION 03
Requires gain from the sale of an 'investment services partnership interest' to be treated as ordinary income.
This ensures that profits from selling these interests are also subject to higher ordinary income tax rates, preventing circumvention of the new rules.
PROVISION 04
Modifies how partnership interests received as compensation for services are valued and treated for tax purposes upon transfer.
This change affects how employees or service providers who receive partnership interests are taxed on that compensation, potentially leading to earlier taxation.
SPONSORSHIP
1 + 0
D· Minnesota
YRS IN OFFICE
7
BILLS LED
21
ACTION TIMELINE
2 EVENTSMAY 8
Introduced in House
MAY 8
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 3275
Congress119th
StatusIn Committee
IntroducedMay 8, 2025
Last actionMay 8, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED MAY 8, 2025
House BillHR 3275Taxation
Small Business Tax Relief Act
INTRODUCED MAY 8, 2025· LAST ACTION MAY 8, 2025
PASSAGE CHANCES
—%
READING
34 min
COSPONSORS
0
COMPLEXITY
Moderate
