"For next two years, every American will keep their tax cuts," Obama said. Other provisions of the expected legislation, including the extension of unemployment benefits for another 13 months, a one-year reduction in the payroll Social Security tax rate to 4.2% from 6.2%, and a provision for businesses to write off all investments for the next year, the president said.
That payroll tax cut rate change is like a 2% raise for every working American right off the top. Now that may actually be stimulative to the economy since more Americans will feel a 2% raise then not. I would much rather they were cutting it from 6.2% to 0% but this should be a good enough start.
That second thing about writing off all investments sounds pretty good as well. I wonder if businesses with an overseas arm can now repatriate their profits tax free or not. In any case 2011 will be a good time to build a new factory or expand to another city if they haven't already done so.
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