American Jobs Act of 2011

Check out this explanation of the American Jobs Act of 2011 taken from an article published September 13-Administration submits "American Jobs  Act of 2011"  to Congress.

In the late afternoon of September 12, the Administration submitted the "American Jobs Act of 2011" to Congress. It formally released the legislative text of the proposed jobs-and-stimulus measure, along with a section-by-section summary.
Businesses would be the major beneficiaries of the President's tax proposals, which would:

... Extend to 2012 the 100% bonus first-year depreciation deduction that generally applies only for assets placed in service before 2012 under current law.
... Cut the employer portion of the Social Security tax (Old Age, Survivors and Disability Insurance, or OASDI, tax) for employers in half from 6.2% to 3.1% on the first $5 million in wages paid by all employers, private or public (but not for government workers or household help).
... For the last quarter of 2011 and for calendar year 2012, create a payroll tax credit that fully offsets the employer Social Security tax that otherwise would apply to increases in wages from the corresponding period of the prior year. For example, if an employer paid wages subject to Social Security tax of $5 million in 2011 and $6 million in 2012, the credit to which the employer would be entitled would eliminate the employer's portion of Social Security taxes on the $1 million of increased wages. The credit would be available on up to $50 million of an employer's increased wages.
... Currently, employers that hire veterans who have been unemployed for at least 6 months and have a service-connected disability are eligible for a maximum tax credit of $4,800. The President's proposal would increase the amount of that credit to $9,600, and create two new hiring credits for veterans: (1) a
$2,400 credit for employers that hire veterans who have been unemployed for at least 4 weeks; and (2) a
$5,600 credit for veterans who have been unemployed for at least 6 months. These credits would be available to tax-exempt entities and public universities as well as for profit employers.
... Create a tax credit of up to $4,000 for hiring workers who have been looking for a job for over six months.
The President's sole tax relief proposal for individuals consists of cutting Social Security taxes in half in 2012 for workers, from 6.2% to 3.1%, thereby providing a tax cut of roughly $1,500 "to the typical family earning
$50,000 a year."

RIA observation: For 2011, workers pay 4.2% Social Security tax (down from 6.2% for
2010) on the first $106,800 of wages.

Want some help understanding this act, click HERE for Stephan Mueller, C.P.A.