Proposed legislation hopes to spur job growth through tax cuts
Story Created:
Mar 1, 2010 at 5:16 PM EST
Story Updated:
Mar 1, 2010 at 6:17 PM EST
ROME, N.Y. (WKTV) - Senator Charles Schumer was in Rome on Monday, introducing a new tax cut that he claims will create new jobs and stimulate the economy.
Schumer is proposing the "Hire Now Tax Cut" - an incentive for small and mid-size businesses to start hiring unemployed workers.
"I thought I'd have a job in two or three months," said Chuck Obernesser.
The last seven months have been long and bleak for Obernesser. For 17 years he worked at Saturn of the Mohawk Valley, until General Motors downsized and the company was forced to close.
"It was devastating," Obernesser said. "It was a rough time. I've had a decent paying job. I'm looking at entry level now."
Senator Schumer is hoping to give Obernesser - along with millions of other unemployed Americans - a leg-up on the job search.
"It breaks your heart," Schumer said of stories like Obernesser's. "The only way get this economy going is to get people hired again. This helps people to be hired."
Schumer is co-sponsoring the bill with Republican Senator Orrin Hatch of Utah.
A business who hires someone who has been unemployed for 60 days or longer is exempt from paying payroll taxes for that employee for one year.
The earlier in the year someone is hired, the greater the tax incentive from the bill will be.
For example, if a business hires a $35,000 worker in March, they will save $1,808, and so on.
Businesses will get an additional $1,000 tax credit for employees kept on the payroll for 1 year.
"We hope it will create about 3 million jobs," Senator Schumer said. "That will be a real good start."
Schumer says the tax credit bill has already passed 70 to 28 in the senate, and he says he hopes it will be signed by President Obama next week.
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