Democrats Push Worker Tax Credit
Senate Democrats support a tax credit for companies who hire new employees, or give current employees raises or increases in work hours. The proposal, made by Senate Majority Leader Tom Daschle, is based on an increase in Social Security payroll taxes. Companies paying more in 2002 would receive a refund equaling the 6.2 percent in payroll taxes that businesses pay for each of their workers above the 2001 limit. Democrats maintain the credit would create jobs without increasing the budget deficit. Critics charge the one-year tax credit is a temporary fix and may result in workers being laid off the following year. They also claim it would not help small businesses that pay regular income taxes, not corporate taxes.
See Associated Press, January 6, 2002