Congressman Courtney applauds the Senate for passing H.R. 2847, the Hiring Incentives to Restore Employment (HIRE) Act, and urges President Obama to sign the legislation into law without delay. Congressman Courtney and the House passed the HIRE Act by a vote of 217- 201 on March 4. The HIRE Act is expected to serve as one step in the effort to help put Americans back to work and help small businesses overcome the hurdles of a recovering economy.
"Congress has taken another critical step in putting Americans back to work. The HIRE Act is a focused piece of legislation that will undoubtedly create a better environment for small and medium sized businesses in eastern Connecticut," said Courtney. "This bipartisan measure is responsive to the needs of struggling businesses and will allow them to grow by investing in their greatest asset -- their employees."
The HIRE Act provides new incentives aimed at helping businesses retain and hire workers. Specifically, it includes a payroll tax holiday for businesses that hire unemployed workers, to create some 300,000 jobs and an income tax credit of $1,000 for businesses that retain these employees. It also contains an extension to strengthen the financial footing of the Highway Trust Fund and allow for tens of billions of dollars in infrastructure investment, preventing the loss of up to one million jobs.
In December 2009, the House passed the broader Jobs for Main Street Act to rebuild highways and transit, expand small business lending and keep police and firefighters on the streets and teachers in the classrooms. Over the course of 10 years, the HIRE Act will be fully paid for by offsets.
Offsets established by the HIRE Act:
Cracks down on Overseas Tax Havens. Provides the U.S. Treasury Department with significant new tools to find and prosecute U.S. individuals that hide assets overseas from the Internal Revenue Service. Recent events have highlighted the growing use of foreign financial institutions, foreign trusts, and foreign corporations by U.S. individuals to evade U.S. tax. In order to prevent this tax evasion, the bill would require new reporting by foreign financial institutions to give the IRS more data to detect fraud and tax evasion. Estimated to raise $8.7 billion over ten years.
Delaying tax break for foreign interest payments. Delays for 3 years (through 2020) a questionable tax break enacted in 2004 that would let U.S. multinational companies that have shipped jobs overseas reduce their U.S. taxes by deducting more of their worldwide interest income against their U.S. income. This provision has not gone into effect, and not one company currently utilizes this provision. Estimated to raise $9.9 billion over 10 years.