Feingold’s Jobs Tax Credit Proposal Will Help Businesses Expand Payroll During Economic Downturn
Washington, D.C. – U.S. Senator Russ Feingold is calling on President Obama to support extending and expanding the tax break for businesses that was recently signed into law. In a letter to the president prior to his June 30th visit to Racine, Wisconsin, Feingold called the current tax break, which is available to businesses that hire workers who have been unemployed for at least 60 days, a “worthy first step” but stated “we need to go further” by extending the tax benefit through 2011, and by expanding it to help businesses that hire other workers, raise worker pay or expand the hours of the current workforce. Feingold has introduced legislation to do just that.
“Nearly fifteen million people are officially considered unemployed, and millions more are looking for more work, or are so discouraged they’ve given up looking,” Feingold wrote. “We can help firms willing to take a chance on a recovering economy by making it easier for them to expand their payroll, and in doing so we can spur the increased demand that will contribute to a more robust recovery.”
Feingold’s proposed jobs tax credit is based on a proposal by the Economic Policy Institute (EPI). Offering tax benefits for two years rather than just one provides firms with an important additional commitment of support as they recover from the economic downturn. EPI estimates that the effect of such a commitment translates to more than 5 million additional jobs in 2010 and 2011, with more than 2 million additional jobs coming in 2011 alone. Feingold’s legislation is fully offset so as not to increase the deficit.
“As you visit Wisconsin, and consider additional steps to fuel additional employment, please consider supporting an expansion and extension of the current jobs tax break along the lines of the legislation I have proposed,” Feingold wrote. “While a jobs tax credit would not address all the challenges businesses face, it would be an effective tool in helping many firms put more people back to work.”
A copy of the letter is available here: http://feingold.senate.gov/pdf/ltr_062910_obama.pdf
