Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

Former Federal Reserve Chairman Alan Greenspan deregulated the financial industry which led to industry corruption and the recession. Back in 2001 he agreed to the Bush tax cuts but now says that the all tax cuts should expire at the end of the year because the government needs the revenue and it can help reduce the federal deficit.

Well, fast forward to today and the tax cuts enacted by President George W. Bush may be extended for two years per an agreement between the Democrats and Republicans. The agreement called the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is expected to create over 1,000,000 jobs and improve the economy. Here is a brief list of the tax cuts that may be extended if Congress agrees to the act:

1. Child tax credit up to $1,000 for lower income individuals

2. Earned Income tax credit

3. American Opportunity tax credit - college tuition tax credit of up to $2,500

4. 2% payroll tax cut for taxpayers

5. Estate tax reinstated at 35% only for estates over $5 million, estates less than $1 million will remain tax free

6. Preserve jobless benefits for 13 months

7. Businesses can expense 100% of their investments in 2011 retroactive to September 2010

8. Those who don’t pay federal income taxes will continue to receive a
refundable credit up to $1,000

9. The capital gains tax would remain at 15% for the highest earners, lower income individuals will continue to pay zero for capital gains and dividends

10. Mortgage insurance premium deductions can continue for individuals making less than $109,000 or married couples earning less than $54,500 each

11. The energy tax credits would continue for home energy efficient improvements and hybrid cars