Senate Sends President $13 Billion in Job Creation Tax Breaks

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The Senate passes, 68-29, $13 billion in tax breaks for hiring new workers, an expansion of incentives for financing construction activity, and an extension of higher expensing limit for capital investments made by small businesses. President Obama is expected to sign the bill (H.R. 2847) today. Under H.R. 2847, employers receive an exemption from Social Security payroll taxes for every worker hired after Feb. 3, 2010, and before Jan. 1, 2011, if that worker has been unemployed for at least 60 days. The bill also allows an additional income tax credit, up to $1,000, that is equal to 6.2 percent of paid wages for every new employee retained for 52 weeks. In the House, Democrats continue to await a cost estimate for health care reform legislation as they eye a weekend vote on the measure.