The U.S.
House approved a bill granting tax credits to companies that hire
the unemployed. But like most things in Washington, the story doesn’t
end there.
First,
before discussing the politics of the bill, let’s describe
the key proposals. Employers who hire the unemployed will receive:
- An exemption from the 6.2% Social Security payroll tax for each
worker hired through December, and
- An additional $1,000 tax credit per worker if new workers stay
on the job a full year.
As they
say in the late-night infomercials, “But wait — there’s
more.” And that’s not necessarily good.
The current
bill, at $35 billion, is a modification of one the House had passed
in December with $50-billion price tag, including
a six-month extension of jobless aid.
The Senate
pared that to a smaller measure. The House amended the Senate’s
measure to conform with so-called pay-as-you-go budget rules requiring
future spending increases or tax cuts to be paid for with either
cuts to other programs or equivalent tax increases.
That tweak
means the bill will have to go back to the Senate for approval — or
further modification — before President Obama get his chance
to sign off on the measure. All of that means we’re probably
looking at a minimum of a few more days before the bill becomes law.
Source: House
OKs tax credits for hiring: What’s Next? Posted in:
Employment law, In this week’s e-newletter
March 5, 2010 by Jim Giuliano
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