Jobs bill highlights
Highlights of the $447 billion Democratic jobs bill.
Federal spending ($175 billion) including:
— $50 billion for highways, transit, rail and aviation improvements.
— $54 billion for unemployment benefits and job training.
— $35 billion for local governments to hire and retain teachers, police and firefighters.
— $30 billion for school construction.
Tax Cuts ($272 billion):
— Extend and expand a payroll tax cut for workers that is scheduled to expire at the end of the year. For 2012, the legislation would reduce Social Security taxes paid by workers to 3.1 percent of their wages. Cost: $175 billion.
— Cut in half — to 3.1 percent — the Social Security taxes paid by businesses on the first $5 million of their payroll in 2012. Exempt companies that increase their payroll in 2012 — through new hires or pay raises — from paying Social Security taxes on the increased payroll, with a cap of $50 million. Total cost: $65 billion.
— Give a tax credit of up to $4,000 for hiring workers who have been unemployed more than six months. Cost: $8 billion.
— Provide a tax credit of up to $5,600 for hiring military veterans who have been out of work more than six months.
— Give a tax credit of up to $9,600 for hiring military veterans with service-related disabilities who have been out of work more than six months.
— Extend tax provisions that enable companies to more quickly write off the cost of new equipment, saving companies an estimated $5 billion.
— A new 5.6 percent tax on annual income above $1 million, beginning in 2013. The tax would be applied to wages and investment income. In 2013, an estimated 392,000 U.S. households would see their taxes increase by an average of $110,500. Over a next decade, the tax increase would raise about $453 billion.
Sources: White House, Congressional Budget Office, Tax Policy Center.