|
American Jobs Act of 2011
On September 12th, President Obama revealed the legislation for the American Jobs Act of 2011. The act is a $447 billion jobs package which includes payroll tax cuts and tax credits to encourage hiring, along with extended 100 percent bonus depreciation. This would be paid for by limiting deductions for higher income taxpayers and changing the taxation of carried interest. However, the limited deductions and changing taxation won't take effect if the Joint Select Committee on Deficit Reduction is able to achieve additional savings.
The White House wants the American Jobs Act to move quickly through Congress. GOP leaders in the House have told the White House they will schedule hearings on the American Jobs Act as soon as possible. This Jobs Act contains much more than tax changes, although both the administration and its opponents are highlighting the tax aspects. One non-tax provision in particular, however, could hold up passage of the bill: a requirement that infrastructure projects use local prevailing wages (which are customarily union wages).
Highlights of the bill include:
- Payroll tax cuts for employers and employees
- Hiring Credits for the long-term unemployed and veterans
- Extended bonus depreciation through 2012
- Extended exemption from the alternative minimum tax (AMT) for interest on certain tax exempt private activity bonds
- Delay in the effective date of three percent government withholding on payments to government contractors until after 2013
More detailed information on the American Jobs Act of 2011 can be found here: Tax Briefing: American Jobs Act of 2011
If you have any questions about these or any tax developments, please contact Fred Schutz at 856-722-5300 ext. 201 or Dave Gill at ext. 210. | 
