Payroll Tax Extension Recap
Published on December 12, 2011. Article written by Adam Boatsman.
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.
About the author:
Adam Boatsman is the Owner / Visionary at BGW Advisors.
CPA License: NC #34370
Learn more about Adam and the rest of our team on the Team page.
