In this tough economy, it's clear that job creation must be a top priority. That's why I have introduced a proposal to create a temporary jobs tax credit to put more Wisconsinites back to work. I'm pleased that President Obama has expressed support for including a jobs tax credit in legislation the Senate is expected to take up soon.
This can't be the only step we take to create jobs, but it's a critical part of any effort to boost the economy.
One recent report, from the Congressional Budget Office said that a tax break for businesses, along the lines of my jobs tax credit proposal, would be among the most efficient and effective ways to spur employment. The report estimated that a similar jobs tax credit would get more bang for the buck in boosting economic growth and increasing employment than any of the other tax policies reviewed.
My bill, "The Putting Americans Back to Work Act," will create a jobs tax credit over the next two years for businesses that increase their payroll by hiring new employees, boosting employee pay or expanding working hours. This credit is targeted, and won't go to firms that only raise the pay of highly salaried executives. And with our nation's deficit growing at an alarming rate, the cost of my jobs tax credit is fully offset over the next ten years so it will not increase the deficit.
Although we need to do all we can to create more jobs, we must keep our fiscal house in order as we do so.
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While a jobs tax credit wouldn't fix all the challenges businesses face, it would be an effective tool in helping some firms hire more workers, and provide a much-needed boost to our economy.
I am happy with the positive response my jobs tax credit has received so far. I will continue to work with my colleagues in the Senate to address this pressing need to create jobs and get Wisconsinites, and all Americans, back to work.
