Payroll Tax Extension Recap

Written by Adam Boatsman | Dec 12, 2011 5:37:31 PM

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.

View full post