CONGRESS PASSES SENATOR SCHUMER'S BIPARTISAN "HIRE NOW TAX CUT"

Yesterday, Senator Charles E. Schumer announced that his bipartisan “Hire Now Tax Cut” proposal to provide businesses that hire unemployed workers with a tax cut has passed Congress and will now go to the President’s desk for signature. The “Hire Now Tax Cut” is part of the HIRE Act that just passed Congress and will soon be signed by President Obama.

Schumer's bipartisan proposal was cosponsored by Senator Orrin Hatch (R-Utah) and provides a tax cut to businesses that hire a worker that has been without work for at least 60 days prior to employment. The businesses will avoid paying the employer’s share of Social Security taxes on that worker for the duration of 2010. The more a business pays a worker (up to the maximum Social Security wage of $106,800), and the longer a business has a worker on its payroll, the greater the tax benefit – so there is an incentive to hire people sooner, and pay them more. The benefits go immediately into a business’ cash flow – no waiting until 2011 to receive a tax credit.

“Passage of the “Hire Now Tax Cut” brings thousands of unemployed New Yorkers that much closer to finding a job,” Schumer said. “Both sides of the aisle have heard the call to focus on jobs. This proposal is not a panacea, but it will start the long process of putting people back to work.”

Schumer offered the following examples of savings that businesses would receive under this proposal:

· Hire a $35,000 worker in March, save $1,808.
· Hire an $80,000 worker in April, save $3,720.
· Hire a $70,000 worker in May, save $2,893.

Click here for more information.