The Office of Management and Budget called the bill "a giveaway that will cost $46 billion and could, in fact, lead to delays and reductions in investment and hiring."
The bill's sponsor, House Majority Leader Eric Cantor, R-Va., says the bill is intended to cut taxes for businesses with fewer than 500 employees.
The White House said Tuesday "under the bill's definition of income, many of the 'small businesses' that would receive the largest tax breaks are law partners, consultants, and other wealthy individuals and corporations with the biggest profits."
The White House said the legislation "opens up avenues for potential abuse, allowing a deduction for payments to family members who have been 'hired' for the year as well as creating an incentive for firms to try to re-characterize current activities to earn the deduction."
The House is scheduled to take up the measure Thursday.
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