Norton Introduces a Job Creation Bill Targeting the Long-Term Unemployed, as Key Unemployment Program is Set to Expire

Press Release

Congresswoman Eleanor Holmes Norton (D-DC) today, profoundly disappointed that 1.3 million Americans are slated to lose unemployment insurance after December 28, 2013, took separate actions today aimed at keeping Congress from "putting the long-term unemployed on the backburner." First, she will go to the floor during the debate on the budget deal, which had an amendment added to extend reimbursement rates for physicians treating Medicare patients for three months, to argue that Congress should also adopt an amendment for parallel action for the unemployed. Second, she introduced a bill today that would also boost the economy by targeting the crisis of the long-term unemployed. Norton's bill would give employers a $5,000 tax credit against their payroll tax liability for each new net person hired who has been unemployed for 27 weeks or longer.

"Even if the Republican majority allows a three month extension of the Emergency Unemployment Compensation program before it expires, my bill is necessary to ensure realistic prospects for the long-term unemployed," said Norton. "By reducing unemployment with significant but realistic economic incentive to hire the long-term unemployed, my bill would keep an increasing number of Americans from losing their job skills and becoming permanently unemployed."

An important benefit of Norton's bill is the increase in demand that would quickly be felt in the economy. Putting long-term unemployed people to work with a $5,000 tax credit against quarterly payroll liability would allow businesses, governments and not-for-profits to claim the credit quickly each quarter when they pay their payroll taxes. Businesses would lower the costs of their products, allowing them to increase sales and hire new workers. The hired long-term unemployed, who have had to defer necessities, would have disposable income to spend on goods and services.

In November 2013, the number of the long-term unemployed, those jobless for 27 weeks or more, was 4.1 million, which accounted for 37.3 percent of the unemployed. The number of long-term unemployed has declined by 718,000 over the past 12 months. However, Norton believes that without her bill and with the expiration of the Emergency Unemployment Compensation program, this positive trajectory could be seriously harmed and reversed.

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