Washington, D.C. — U. S. Representative Bob Etheridge, the only North Carolina member on the House Ways and Means Committee, introduced H.R. 4437 in the House of Representatives today to give American businesses incentives to hire new employees as the country emerges from recession.
The “HIRING Act” would spur private job creation and create millions of jobs in 2010 and 2011.
“Getting Americans back to work is a crucial part of fixing our economy as a whole,” Etheridge said. “The HIRING Act will help create jobs for Americans who want to get back to work.”
Etheridge’s HIRING Act would provide a refundable tax credit to any businesses that expand their payroll by at least 3 percent in 2010 or by at least 5 percent in 2011. The bill would provide a credit of 15 percent of additions to payroll in 2010 and 10 percent in 2011.
The tax credit will be based on payroll and businesses will be rewarded for hiring new employees, increasing employee hours, or restoring employee pay.
Rep. Etheridge believes that further strengthening businesses’ ability to hire is a critical piece of the puzzle to address the economic downturn and push the American economy forward into prosperity. H.R. 4437 creates jobs, promotes growth, and restores economic demand.
Economic models show that the HIRING Act would produce 2.7 million jobs in the first year and nearly 2 million jobs in the second year, at an average cost of $1,800 per job when economic growth effects are taken into account.
“Many businesses are waiting on the sidelines before hiring or expanding and that’s why this legislation is urgently needed now,” Etheridge said. “The HIRING Act will help businesses make hires now and boost the economy by putting people to work.”
The HIRING Act has been endorsed by the Small Business Majority and grows out of a proposal by the Economic Policy Institute. The idea of a job creation tax credit has been supported by President Obama, Minority Leader Cantor, and several Nobel-prize winning economists.