September 21, 2011|
The American Jobs Act of 2011, proposed by President Obama on 9/12, is presently being honed by Congress. In its current state, the proposed $447 billion job-creation plan has several key aspects of which we'd like to ensure you're aware: • The 2012 Employee's portion of Social Security Tax would be decreased to 3.1%, as would the Employer's up to the first $ 5 million of wages paid. The Self Employed tax rate would be reduced to 6.2%. • There would be a tax credit available 10/1/11-12/31/12 to offset the Employer portion of Social Security Tax due to wage increases, up to $50 million higher than the prior tax year. • 100% of Bonus Depreciation would extend through 2012. • The value of deductions and exclusions would be limited to 28% of the taxpayer's taxable income effective for taxable years beginning on or after 1/1/13 and apply only to single filers with an AGI of over $200K and married filing joint filers whose AGI is above $250K. We will keep you updated as this legislation reaches its final version. If you have any questions, please don't hesitate to reach out to us at 302-674-4305 or 410-213-8700.