Washington, D.C. —- U.S. Rep. Bob Etheridge, member of the House Budget Committee, questioned Office of Management and Budget (OMB) Director Peter Orszag, Ph.D., yesterday afternoon during the committee’s consideration of the President’s Fiscal Year 2011 budget proposal.
During testimony the OMB director acknowledged that tax credits to businesses who hire or expand payroll could improve the economy.
“I introduced H.R. 4437, the HIRING Act of 2010, several weeks ago to provide tax credits to businesses that create jobs and expand payroll,” Etheridge said. “I am pleased that the President has proposed a job creation tax credit very similar to my HIRING Act in his budget proposal, and now Dr. Orszag has publicly recognized that tax credits to businesses who hire can effectively move our economy forward.”
Rep. Etheridge supports strengthening businesses’ ability to hire new workers as 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.
Dr. Orszag told Members of the Budget Committee the business tax credit approach “will jump-start” jobs.” Congress may consider job creation and business tax credit proposals later this month.
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.
“We’ve passed tax cuts, invested in infrastructure and saved state and local jobs,” Etheridge said. “I am thankful that both the President and the Budget Director recognize that a solution like my bill is an important step towards job creation in North Carolina and across the country.”