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    Payroll Tax Extension Recap

    While nothing has passed yet in regards to payroll taxes, the following is a quick recap of each respective proposal from Republicans (as the Democrat's bill did not pass) and the compromise bill proposed in the Bipartisan Jobs Creation Act:

    Republican Jobs Creation Act
    • Extend payroll tax cut.
    • Extend bonus depreciation
    • Tax 100% of unemployment benefits starting 2012.

     

    There are a few other provisions in the Republican version of the bill – however these are the major provisions that impact small to midsized privately held companies.

    • Extend payroll tax cut
    • Lower payroll rate to 4.2%
    • Provide 25% tax credit for qualified equity investments in start ups.
    • Extend 100% bonus depreciation
    • Add in 2% millionaire's surtax with a carve out to protect small business.
    • Repeal tax breaks for the five largest oil companies.

     

    In addition, Senator Casey (D) has proposed a compromise bill that with similar provisions to the compromise bill, with the exception that it also makes millionaires exempt from food stamps and unemployment.

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