The federal government is tossing around the idea of creating a tax credit for businesses hiring new employees. The bipartisan credit has been gaining momentum as employment numbers continue to frustrate economists. According to the New York Times, several key economists, including Nobel laureates and former cabinet members, support the measure.
The credit could cost upwards of $20,000 per job, according to research by the Upjohn Institute for Employment Research, a relative bargain when compared to the hefty price tag of $92,000 per stimulus job.
The measure is likely to have some clear opposition from both sides of the aisle. Many on the right do not like tax breaks with strings attached, while many on the left will see it as just another corporate handout lacking a guarantee of results.
Many states have implemented similar programs with varying degrees of success, though some question the sustainability of such a program. Others question whether the dangled carrot (a few thousand dollars) is big enough to entice an already imperiled business sector to hire additional employees, or would they just be getting an extra few thousand dollars for employees they were going to hire anyway.
The White House is said to be seriously considering the proposal.