ANDREW TAYLOR
Associated Press Writer
WASHINGTON – Companies that hire the unemployed would claim new tax breaks under a jobs-promoting bill that’s expected to pass the Senate on Wednesday.
It’s the first of several jobs bills promised by Democrats, and passage would give President Barack Obama and Majority Leader Harry Reid, D-Nev., a much-sought victory. But the measure’s impact on hiring is likely to be relatively modest, economists say.
The bill up for a vote Wednesday would exempt businesses hiring the unemployed from the 6.2 percent Social Security payroll tax through December and give them an additional $1,000 credit if new workers stay on the job a full year. It would also extend federal highway programs through the end of the year and make a $20 billion cash deposit into the highway trust fund to make up for shortfalls from lower-than-anticipated gasoline tax revenues.