Bill would provide a refundable tax credit to any business that expands their 2010 and 2011 payrolls
A bill (H.R. 4437) that would provide a refundable tax credit to businesses expanding their payrolls was introduced on January 13, 2010, by Reps. Bob Etheridge D-NC and Steve Kagen (D-Wisc).
Called the Hiring Incentives to Reinvest and Incentivize New Growth (HIRING) Act of 2010, the bill would provide a 15 percent refundable tax credit to any business that expands their payroll by at least 3 percent in any calendar quarter of 2010, and a 10 percent refundable tax credit to any business that expands their payroll by at least 5 percent in any calendar quarter of 2011.
The HIRING Act could create 2.7 million private sector jobs in its first year and nearly 2 million jobs in its second year, at an average cost of $1,800 per job when economic growth effects are taken into account, according to the Economic Policy Institute, said Etheridge.
The tax credit will be based on payroll and businesses will be rewarded for hiring new employees, increasing employee hours, or restoring employee pay. The HIRING Act would also provide tax credits quarterly, so a business would realize the tax benefit more immediately.
“Getting Americans back to work is a crucial part of fixing our economy as a whole,” Etheridge said. “The HIRING Act will help create jobs for Americans who want to get back to work.” Further strengthening businesses’ ability to hire is a critical piece of the puzzle to address the economic downturn and push the American economy forward into prosperity, said Etheridge.
According to Etheridge, the HIRING Act has been endorsed by the Small Business Majority and grows out of a proposal by the Economic Policy Institute. In addition, the idea of a job creation tax credit has been supported by President Obama, Minority Leader Cantor and several Nobel-prize winning economists, he said.
The bill, which has eight cosponsors, has been referred to the House Ways and Means Committee.
Reprinted with permission. © CCH
<p>Bill would provide a refundable tax credit to any business that expands their 2010 and 2011 payrolls A bill (H.R. 4437) that would provide a refundable tax credit to businesses expanding their payrolls was introduced on January 13, 2010, by</p>
Bill would provide a refundable tax credit to any business that expands their 2010 and 2011 payrolls
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