In his speech, Obama proposed tax cuts to help small businesses. The jobs bill will cut the payroll tax in half on the first $5 million, which covers the full payroll for 98% of American businesses, according to the White House.
The bill will also provide a “payroll tax holiday” for firms that add new workers or increase the wages of current workers, for up to $50 million in payroll increases. New tax credits include a $4,000 credit for hiring long-term unemployed workers, and up to $9,600 for hiring unemployed veterans.
The bill also proposes reforms and regulatory reductions to help small businesses access capital. And reforms to unemployment insurance have potential to help unemployed individuals seeking to start up a business.
Obama is calling on the wealthy, oil companies, and private jet owners to contribute in order to pay for the bill.