Zandi: Hiring Tax Credit Can Create 250K Jobs

03.05.2010

Despite doubts among many lawmakers that the measure will create many jobs, the House passed legislation yesterday giving companies that hire the jobless a temporary payroll tax break.

The measure passed, 217-201, on a mostly party-line vote. The bill also extends federal highway programs through the end of the year.

Some Democrats think the approximately $35 billion bill - blending $15 billion in tax cuts and subsidies for infrastructure bonds issued by local governments with $20 billion in transportation money - is too puny, while others say the tax cut for new hires won't generate many jobs.

However, the pressure is on to address jobs and deliver a badly needed win for President Obama and a Democratic Party struggling in opinion polls ahead of the Nov. 2 midterm elections. Further jobs measures are promised.

Economist Mark Zandi of Moody's Economy.com said the new hiring tax credit could spur creation of about 250,000 jobs. The economy has shed 8.4 million jobs since the recession began in December 2007. (Philly.com) > View article