President Obama’s $447 billion stimulus plan includes:
- A Social Security payroll tax cut for employees that would further decrease Social Security taxes to 3.1% for 2012.
- A Social Security payroll tax cut for employers that would decrease Social Security taxes from 6.2% to 3.1% on the first $5 million in wages; plus a full holiday from the 6.2% tax on wages for new workers or raises for existing workers up to a total of $50 million.
- A tax credit of between $5,600 and $9,560 for companies that hire unemployed veterans with service-connected disabilities who have been seeking work for more than six months.
- Expansion of an existing tax credit—up to $4,000—for employers that hire unemployed workers who have been seeking work for six months.
A version of the plan was recently defeated in Congress, but the concepts are likely to reappear in other proposals.