Senate passed a bill Wednesday guaranteeing tax breaks to Corporations that hire unemployed workers. The bill, passed Wednesday by a 70-28 margin was the first win for the democrats and President Barack Obama in months.
The new bill, designed to help lower to stagnant 9.7 percent employment rate, was the first to pass since the health care plan was rejected in late December. Two provisions are included beneath the newly passed bill. The first of the two would render a business exempt from the 6.2 percent Social Security payroll tax through the end of the year award it a $1,000 credit for employees that stay on for a year. The second prong expands mass transit programs and highway construction by $20 billion in funding in order by spring to compensate for disappointing gasoline tax revenue.
The $35 billion bill is notable for reasons beyond the changes it hopes to produce as well, it’s passing demonstrates one of the few departures from bi-partisan gridlock with Republican Senator Scott Brown and 12 others from the party voting in favor of the measure.
Perhaps if there is something the two parties can agree on, it’s that unemployment needs to be solved in order to move forward with the recovery. Economists are estimating the new hiring tax rebate could spur the creation of as many as 250,000 new jobs.
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