Senate Democrats Offer Small Business Tax Cut to Spur Economic Growth

Employers that add payroll in 2012 would be eligible for a 10 percent tax cut, under a plan by the Senate Democratic leadership. Under the Small Business Jobs and Tax Relief Act of 2012, the tax cut would be available for income in excess of a company's 2011 payroll, and would be capped at $500,000 per employer. Senate Majority Leader Reid says the proposal also would extend 100 percent bonus depreciation on qualified capital through 2012 for all employers to encourage investment. Without the provision, businesses could only deduct 50 percent for the year.