American Jobs Act

By Bethany Pusiful, CPA

When President Obama spoke on September 9th, he outlined a plan that he hopes will help put Americans back to work. The following is a brief outline of his plan:

- Tax cuts to help America’s small business hire and grow
   o Cutting the payroll tax in half to 3.1% for 98% of businesses
   o A payroll tax holiday for added workers or increased wages
   o Reforms and regulatory reductions to help entrepreneurs and small businesses access capital
   o Extending the 100% immediate deduction on investments in new plant and equipment

- Putting workers back on the job while rebuilding and modernizing America
   o Tax credits for hiring unemployed veterans ranging from $5,600 to $9,600
   o Preventing layoffs of up to 280,000 teachers while keeping cops and firefighters on the job
   o Modernizing at least 35,000 public schools across the country
   o Modernizing our roads, rails, airports, and waterways while putting hundreds of thousands of workers back on the job
   o Putting people to work rehabilitating homes, businesses, and communities, leveraging private capital and scaling land banks and other public-private collaborations
   o Expanding access to high-speed wireless

- Pathways back to work for Americans looking for jobs
   o Reforming the unemployment insurance program including extending unemployment insurance, preventing 6 million people from losing their benefits
   o A $4,000 tax credit for hiring long-term unemployed workers
   o Expanding job opportunities for low-income youth and adults

- Tax relief for every American worker and family
   o Expanding the payroll tax cuts passed last year to cut workers’ payroll taxes in half in 2012, providing $1,500 in tax cuts to the typical American family, without negatively impacting Social Security
   o Allowing more Americans to refinance their mortgages at today’s historically low interest rates