President Obama to Propose New Small Business Jobs and Wages Tax Cut
New jobs proposal will create jobs, cut taxes for small businesses
WASHINGTON, DC – Tomorrow in Baltimore, Maryland, President Obama will announce details of the Small Business Jobs and Wages Tax Cut, one of his new proposals to create good jobs in America. In last night’s State of the Union Address, President Obama outlined a series of ways he will fight to create good paying jobs and continue our economic recovery.
One of these proposals, the Small Business Jobs and Wages Tax Cut, will put more Americans back to work by giving businesses – particularly small business – a tax cut for new hiring. The new proposal will also provide tax incentives for businesses to expand wages for their employees.
Through the Small Business Jobs and Wages Tax Cut:
- Businesses will receive a $5,000 tax credit for every net new employee that they employ in 2010. The total amount of the credit for any one firm will be capped at $500,000, to ensure that the majority of the benefit is targeted at small businesses. Start –ups will be eligible for half of the tax credit.
- Small businesses that increase wages or hours for their existing employees will be reimbursed for the Social Security payroll taxes they pay on real increases in their payrolls. This bonus would be based on Social Security payrolls, so it would not apply to wage increases above the current taxable maximum of $106,800.
- Firms will be able to claim the credit on a quarterly basis, which gets money out to businesses quickly and provides and early incentive to hire and increase payrolls.