Obama’s American Jobs Act and Small Business
President Obama introduced the American Jobs Act last week and promised to help small business. Americans have had mixed reactions to the proposal and many are skeptical of the bills’ ability to assist their business. If you are a small business owner or employee here is a breakdown of perks the bill outlines for businesses:
- Offers a tax cut of up to $4,000 for employers who hire a person who has been unemployed for at least six months. If the employee is a veteran employers could receive up to a $9,600 tax cut.
- Cut the employer share of payroll taxes in half to 3.1% on the first $5 million.
- The 6.2% tax on payroll increase will be eliminated on payroll increase of up to $50 million.
- Businesses will be able to depreciate select first year expenses.