CAWP Legislative News 2-10

Senators Prepare Tax Cuts Bill to Help Job Creation

Senate Democratic leaders unveiled legislation aimed at cutting taxes for businesses to create jobs as part of a multi-bill jobs agenda. A key component of the legislation is a tax credit for businesses that hire new workers.

One proposal, co-written by Senators Charles Schumer (D-New York) and Orrin Hatch (R-Utah), would offer a refund of the 6.2 percent employer share of the Social Security payroll tax to companies of any size that hire workers this year. Employers could also receive an additional $1,000 tax credit next year for each new worker they keep on the payroll for at least a year if the worker’s pay in the second half of the year is at least 80 percent of the employee’s pay in the first 26 weeks. The Senate may consider additional hiring tax credit proposals, as well.