Two-year tax extension signed into law
President Obama signed the tax compromise bill into law this afternoon. It passed the House 277-148 late last night after clearing the Senate 81-19 on Wednesday. Senate Republican Leader Mitch McConnell (R-Kentucky) helped broker the deal between the President and the GOP, and stood next to him on Friday during the signing.
Kentucky employers and citizens stand to gain significantly from the tax deal, which extends Bush-era tax cuts for two years and $57 billion worth of unemployment benefits, reduces the employee payroll tax by 2% over the next year, and renews the estate tax at 35 percent, with a $5 million exemption. To see other provisions that may impact your business, click here. The IRS is urging employers to adjust their payroll systems as soon as possible in 2011 and but not later than January 31, 2011. To determine how the law affects your tax liability personally, check out the Tax Foundation’s 2011 Tax Calculator.