President Obama’s American Jobs Act
September 12th, 2011
President Obama attended a Joint Session of Congress on September 8th. In his address to Congress, the President laid out his American Jobs Act (AJA), which is his $447 billion plan to increase jobs and spur economic growth.
During his speech, President Obama offered specifics related to his proposal which includes a payroll tax cut for businesses; expensing for new investments; and regulatory reform. Other items proposed were tax credits for hiring veterans and the long-term unemployed, and the extension of unemployment insurance benefits. The following are a few key facts contained in the proposal:
Tax Cuts to Help America’s Small Businesses Hire and Grow
- Cutting the payroll tax in half for 98 percent of businesses
- Limited to the first $5 million in payroll
- Tax rate cut from 6.2% to 3.1%
- A complete payroll tax holiday for added workers or increased wages
- Completely eliminates the 6.2% payroll tax rate for firms that increase their payroll by adding new workers or increasing the wages of their current worker
- Capped at the first $50 million in payroll increases compared to the prior year
- Extending 100% expensing into 2012
- Effective incentive for new investment
- Reforms and regulatory reductions
- To help entrepreneurs and small businesses access capital
Putting Workers Back on the Job While Rebuilding and Modernizing America
- “Returning Heroes” hiring tax credit for veterans
- $5,600 tax credit for hiring veterans that have been unemployed for 6 months or more
- $9,600 tax credit for hiring veterans that have been unemployed for 6 months or more and with a service-connected disability
- Preventing Teacher Layoffs and Keep Police and Firefighters on Job
- $30 billion toward educators and $5 billion toward public safety
- Modernizing 35,000 public schools across the country
- $25 billion towards school infrastructure
- Immediate investments in infrastructure and a bipartisan “National Infrastructure Bank”
- $50 billion for highways, transit, rail and aviation.
- A New “Project Rebuild”
- $15 billion for rehabilitating and refurbishing thousands of vacant and foreclosed homes
- Expanding access to high-speed wireless
Pathways Back to Work for Americans Looking for Jobs
- Reform Unemployment Insurance Program
- Extension of current benefits
- Work Sharing
- “Bridge to Work” Program
- Entrepreneur and Wage Insurance Programs
- Hiring Tax Credit of $4,000 to employers for hiring long-term unemployed workers
- Prohibiting employers from discriminating against unemployed workers when hiring
- Expanding Job Opportunities for low-income youth and adults
Tax Relief for Every American Worker and Family
- Cutting Payroll Taxes in half thru 2012
- Mortgage Refinance Program
President Obama will present his proposal to Congress this week and has asked the Joint Committee to come up with additional deficit reduction necessary to pay for the Act and still meet its deficit target.
For additional details related to President Obama’s American Jobs Act, please click on the following link:
CCG will continue to monitor the above proposal and any additional legislation proposed within Congress and provide updates as warranted.
About CCG, LLC.
CCG is a national company specializing in assisting all "for profit" business across the U.S. in capturing incentive dollars and tax credits available to them from the government. CCG's mission is to help all mid-size and large corporations attain funds they should be claiming from the government by leveraging proprietary technology and processes.
CCG is a well established privately held company headquartered in Pasadena, California with a national presence and a best in class technology platform.