Hometown Tax Credit for Job Creation
With unemployment over 10% in Kentucky, we need to jumpstart the economy and create jobs right away. Therefore, as your next United States Senator, Jack will push for a Hometown Tax Credit that rewards companies and small businesses that create jobs right here in Kentucky.
Jack's Hometown Tax Credit:
* Gives a 20% tax credit to employers that expand their payroll and hire more workers. Employers that create new jobs, increase paid hours, or raise wages can qualify by proving they have boosted employment over the past year.
* The credit may be claimed quarterly by businesses.
* Total benefit is capped at $500,000 per firm (i.e., up to $2.5 million net payroll increase).
* Applies to all private sector businesses and nonprofits, but not government workers.
* Total cost of program is capped at $30 Billion and money is distributed on a first-come, first-serve basis. Program ends when funds are exhausted unless Congress renews without deficit spending.
o Mark Zandi of Moody's Economy.com says this will increase incentive to hire quickly, and lower cost per job to $41,000/net new job.
- Is fully paid for by repealing foreign interest and income deduction and closing offshore tax loopholes.
- Estimated job creation 731,000 nationwide in 2010-2011; 10,975 jobs in Kentucky.
The Conway Hometown Tax Credit addresses criticisms of the law recently passed by the Senate and signed by the President:
* Much larger credit (20% vs. 6.2%) more likely to spur job creation
* Cap on spending enforces fiscal discipline and make it more likely firms will rush to take advantage of available funds
* Gives employer flexibility to hire according to business needs increases likelihood of job creation
* Not vulnerable to "fire and hire" abuse