President Introduces American Jobs Act
By Diane Giordano, Partner, Tax & Business Services
The President unveiled the American Jobs Act, which calls for tax cuts, hiring incentives and infrastructure spending to help jump-start the economy.
The Act will be paid for by limiting deductions for high income taxpayers, among other offsets.
The Act, which has been sent to Congress, includes some of the following tax provisions:
- Reduction of employee-share OASDI from 6.2% to 3.2% for year 2012
- For certain employers, the employer share of OASDI will also drop to 3.1% on the first $5 million of wages
- Provides for a 100% payroll tax credit in cases of payroll growth up to $50 million from the prior year
- Tax credit for employers hiring long term unemployed individuals
- Expand the Work Opportunity Tax Credit
- Tax credits to encourage employers to hire military veterans
- The extension of 100% bonus depreciation for 2012
Some revenue raisers in the Act include:
- Proposal to further limit itemized deductions
- Taxation of carried interest as ordinary income
- Repeal of oil and gas preference items
- Change in the depreciable life of corporate jets
As Congress reviews these provisions and the Act becomes final, Marcum LLP will keep you updated. Should you have any questions on the above provisions, consult your Marcum LLP tax professional.