American Jobs Act of 2011 (S. 1660, introduced on Oct. 5, 2011 and set for vote on Oct. 11, 2011)

(sponsored by Sen. Reid (D-NV) with no co-sponsors; represents Administration's stimulus proposal as announced before joint session of Congress on Sept. 8, 2011; extends several stimulus measures beyond 2011 and CRS estimates that bill provides for $35 billion to local governments and $100 billion in various infrastructure improvement programs; bill extends 100 percent bonus depreciation through 2012 and cuts employer portion of Social Security tax in 2012 from 6.2 percent to 3.1 percent on first $5 million of wages paid (presently 4.2 percent for 2011, but would otherwise be 6.2 percent for 2012) which would also apply to earnings of self-employed persons;  OMB projects that bill would add $447 billion to deficit over next ten years; establishes credit that fully offsets employer portion of Social Security tax on wages that exceed wages paid in immediately prior year (up to $50 million of excess wages); creates credit for hiring of unemployed veterans worth up to $9,600; establishes 5.6% surtax on individual taxpayers with MAGI exceeding $500,000 (single and MFS) ($1,000,000 otherwise) beginning in 2013 (adjusted for inflation) which would also apply to capital gains and dividends (which would effectively raise the capital gain rate for such persons from 15 percent to 29.4 percent in 2013 (expiration of 2001 tax cuts would increase capital gain rate to 20 percent, plus 3.8 percent surtax contained in health care legislation plus the 5.6 surtax); result would be a top marginal rate of 55 percent in 2013; bill faces bi-partisan opposition on numerous provisions that have not received bi-partisan support in the past; bill not expected to pass either the Senate or the House).