House Passes Payroll Tax Cut to Promote Job Creation

Yesterday, the House of Representatives passed a version of Jobs Bill recently passed by the Senate. The legislation contained a payroll tax cut similar to one advocated by NDN. Specifically, the bill included:

• A payroll tax holiday for businesses that hire unemployed workers, to create some 300,000 jobs and an income tax credit of $1,000 for businesses that retain these employees 

• Tax cuts to spur new investment by small businesses to help them expand and hire more workers 

• Extension of the Highway Trust Fund allowing for tens of  billions of dollars in infrastructure investment 

• Provisions -- modeled after the Build America Bonds program – to make it easier for states to borrow for infrastructure projects, such as school construction and energy projects 

For more on the payroll tax cut, please see:

• Cutting Payroll Taxes to Create Jobs by Dr. Robert Shapiro, February 5, 2010

• President Obama, Senators Advance Payroll Tax Cut to Spur Job Creation by Jake Berliner, January 29, 2010