The Senate approved a $15 billion bill to spur job creation on Wednesday 70-28. Surprisingly, the bill was strongly supported by both Democrats and Republicans. It is projected to save or create 1.3 million jobs and help unemployed workers get back on their feet.
Tax Credit for Business Owners
In an effort to encourage job creation, the bill offers a tax incentive and credit for employers who hire new workers. Basically, employers would not have to pay their share of federal payroll taxes for the rest of 2010 for any new workers that were unemployed for at least 60 days.
In addition, if the employer still has the worker on the books in a year, the employer would receive an additional $1,000 tax credit for that employee.
Other Bits in the Bill
In addition to the tax credit for business owners, the bill will also aim for the following:
- Improving access to capital for small businesses
- Extending the current federal subsidy for road and bridge repairs carried out by states
- Modestly expanding federally subsidized bonds to help local governments raise funds for infrastructure projects
The lawmakers behind the bill hope that this effort will help unemployed workers get back into the work force sooner than later to help the economy begin to recover. While the bill looks like a good bet for job creation, we still may have a ways to go.