Senator Specter Urges Prompt Consideration of Tax Credits to Promote Job Growth

Suggests Proposal of $4,000 Tax Credit Over Two Years Could Increase New Hires

Washington, D.C.

-- October 7, 2009 -- Senator Arlen Specter (D-Pa.) today wrote to Majority Leader Harry Reid (D-Nev.) and Senate Finance Committee Chairman Max Baucus (D-Mont.) urging them to consider legislation that would provide immediate tax incentives to employers who create new jobs or provide employees with more hours worked. A copy of the letter is attached.

In the letter, Sen. Specter states: “Today’s New York Times story “Support Builds for Tax Credit to Help Hiring” mentions a number of proposals which, if publicized correctly, and provide a prompt incentive, could start putting people back to work immediately. I believe a proposal which provides a $4,000 tax credit ($500 per quarter for 2 years per new employee) could have a tremendous and immediate impact on the economy.”

Currently, unemployment in the United States stands at 9.8%. In Pennsylvania, the unemployment rate is currently 8.6%, up from 7.8% in March.

Full text of the letter below. The handwritten note at the bottom of the letter reads: “Harry, I hear you are meeting with the President later today on the economy, so I wanted to weigh in on this issue.”

October 7, 2009

Dear Majority Leader Reid and Chairman Baucus:

I write to urge you to consider legislation that would provide immediate tax incentives to employers who create new jobs or provide employees with more hours worked. Such legislation has the potential to stem the tide of increasing unemployment and the financial strain for Americans whom have lost their jobs.

The Bureau of Labor Statistics released figures earlier this month showing that the unemployment rate has increased from 9.4% in July to 9.8% in September. In Pennsylvania the unemployment rate has increased from 7.8% in March to approximately 8.6% in August.

Today’s New York Times story “Support Builds for Tax Credit to Help Hiring” mentions a number of proposals which, if publicized correctly, and provide a prompt incentive, could start putting people back to work immediately. I believe a proposal which provides a $4,000 tax credit ($500 per quarter for 2 years per new employee) could have a tremendous and immediate impact on the economy.

This tax incentive to rehire workers, similar to the Cash for Clunkers program, could incentivize companies to expand their workforce and act as a boon to the economy.

Given the significant impact of job loss on economic recovery and the hardship 15.1 million Americans are encountering due to layoffs brought, I urge you to focus on this issue in a timely manner and give it fair and full consideration.

Sincerely,

Arlen Specter

Source: Senator Arlen Specter