Tax Relief Act of 2010 - Critical Items you should know President Obama has signed into law the Tax Relief Act of 2010. A few details that the new law includes are as follows: A one-year 2% reduction in the employee portion of Social Security tax from the current 6.2% to 4/2% - in other words, a "payroll tax holiday." A two-year extension of all of the Bush tax rates currently in effect. Obama's signature "Making Work Pay" provision is being dropped in favor of the 2% payroll tax holiday (mentioned above). A temporary, 13-month extension of unemployment benefits. Other non-payroll-related items include: A 100% dedecution for business capital improvments. A two-year extension of current capital gains tax rates. A two-year estate tax rate set at 25% with an exemption for estates valued at up to $5 million. Extension of the R&D tax credit.     Keep checking back to this page for more updates on the new tax laws as well as any other changes to your financial outlook!