The Patriot-News: U.S. Sen. Bob Casey Says Job Creation is No. 1 Priority, Calls for Job Creation Tax Credit

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U.S. Sen. Bob Casey Says Job Creation is No. 1 Priority, Calls for Job Creation Tax Credit

Source: The Patriot-News

By Laura Vecsey

With stocks retreating on more unsettling news about jobs and retail sales, U.S. Senator Bob Casey, D-PA., said it's time to putjob creation on the front burner and backed it up Thursday by calling for a jobs creation tax credit.

"Over the last couple years the U.S. economy has steadily shed jobs and wages have largely been stagnant," Casey said, adding that despite signs that the economy is responding to the economic crisis, the loss of jobs must be addressed. "Everything except national security is secondary,'' Casey said.

"That is why I am proposing a job creation tax credit to help employers hire workers, put money back into local economies and spur economic growth,'' Casey said.

Casey's proposal does not have funding sources identified yet. He said the bill could stand alone or be included in the jobs bill that the U.S. Senate expects to take up when the return to work next week.

Casey's proposal builds upon the jobs tax credit enacted in 1977 and was responsible for the creation of 700,000 jobs. Despite signals from the White House that tax credit bill would not be part of a jobs stimulus, Casey's proposal includes a provision that could minimize the potential for fraud.

Employers who increase their payroll by hiring new employees will be eligible to receive a tax credit. Casey said his bill is intended primarily for small businesses that employ 100 or fewer people. Employers would only receive the credit if they increase payroll. This would address potential fraud where employees are let go and then rehired in order to obtain the tax credit.

The proposal would provide a tax credit of 20% for small employers and 15% for large employers -- those with more than 100 full-time employees.

The credit would only apply to an employee's wages up to median family income of $50,300. The employer would be eligible to receive the tax credit for one year.

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