Greetings!  

Calling it the American Jobs Act, the tax break items proposed in Thursday's speech are as follows:

• A bigger cut for all workers in their payroll taxes, from the 2011 cut from 6.2% to 4.2%, to an even lower 3.1% effective in 2012. These apply to the Social Security portion of the FICA payroll tax, and currently applies to earnings up to $106,800;
• In addition, the payroll tax cut will apply to businesses with payrolls up to $5 million, from 6.2% in 2011 to 3.1% in 2012.
• For small businesses that create jobs or give raises above the prior year, the President is proposing a full holiday on the 6.2% payroll tax businesses pay through 2012 for any growth in their payroll up to $50 million above the prior year.
• A new tax credit up to $4,000 for businesses that hire workers who have spent more than 6 months looking for a job;
• Businesses will receive tax credits from $5,600 to $9,600 for hiring unemployed veterans;
• Businesses can continue to expense the full cost of depreciable assets (other than real estate) in 2012

We will provide more details as they become available.