Since the U.S. economy sank in 2008, millions of workers have been laid off, and many of those have remained unemployed on a long-term scale. But with the proposed American Jobs Act, President Obama hopes to stimulate hiring, especially among long-term unemployed.
In an effort to make a dent in the unemployment number, the American Jobs Act would offer employers various tax credits to hire new workers, and payroll taxes would specifically be targeted. In fact, half of the first $5 million in payroll taxes would be cut for 98 percent of businesses, and a payroll tax holiday would be available for businesses that employ new workers or increase wages.
Also among the tax incentives would include a $4,000 tax credit to employers for hiring long-term unemployed workers as well as a provision that outlaws employers from discriminating against unemployed job candidates during the hiring process. These are particularly important components for stimulating job growth, says Ravin Jesuthasan (right), global head of talent management at Towers Watson.
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