In the late afternoon of September 12, President Barack Obama submitted the "American Jobs Act of 2011" to Congress.

 Specific tax breaks in the proposal include the following:

1. Temporary payroll tax cut for employers, employees, and the self-employed:The current temporary reduction in payroll taxes would be expanded. For 2012, the employee's portion of Social Security tax would be 3.1%; the employer's portion would also be 3.1%, up to the first $5 million of wages paid by the employer. The tax on self-employed workers would be reduced to 6.2%.
    
2. Temporary tax credit for increased payroll: From Oct. 1, 2011, through Dec. 31, 2012, the proposed bill would provide a payroll tax credit to offset the employer portion of Social Security tax due to wage increases over the corresponding period in the prior year.
    
3. Extension of temporary 100% bonus depreciation for certain business assets: The proposal would extend 100% bonus depreciation through the end of 2012.
    
4. Delay in application of withholding on government contractors: The measure would delay the effective date of the 3% withholding requirement on payments to government contractors until after 2013.
    
5. Returning heroes and wounded warriors work opportunity tax credits: The measure would double the section 51(b) credit available for hiring certain unemployed, disabled veterans. It also would create two new credits: One for hiring veterans who have been unemployed for at least four weeks and another for hiring veterans who have been unemployed for at least six months.
    
6. Long-term unemployed workers work opportunity tax credits: Create a tax credit of up to $4,000 for employers who hire individuals who have been unemployed for at least six months

The proposal also contains a number of tax-related revenue raisers:

1. 28% limitation on certain deductions and exclusions: This provision would limit the value of deductions and exclusions to 28% of the taxpayer's taxable income. This would apply to joint filers with adjusted gross income over $250,000 and single filers with adjusted gross income over $200,000.
    
2. Tax carried interest in investment partnerships as ordinary income: This provision would change the rules regarding partnership interests transferred in connection with performance of services and would add a new Code section with special rules for partners providing investment management services to partnerships. The effect would be to tax carried interests at ordinary income rates instead of as capital gains.
    
3. Change corporate jet depreciation: Under this provision, corporate jets would be depreciated over the same seven-year period as other aircraft.

We will keep you apprised of any additional Legislative action as it relates to these provisions.