President Announces Tax Credits to Promote Job Growth: “It’s time to put America back to work.”
“I don’t have to tell folks in Baltimore that even before this recession hit, the middle class was facing real hardships: stagnant incomes, rising costs, growing economic security. So rebuilding this economy and rebuilding -- and rebuilding it stronger than before -- will take time and it's going to take hard work and vigilance.” – President Obama
A report released today announced that the country’s Gross Domestic Product increased by 5.7% in the fourth quarter of 2009 -- the strongest growth in six years. While the announcement is a clear sign that the economy is headed in the right direction, improved economic statistics are cold comfort to the millions of Americans struggling to find jobs.
That's why this morning, President Obama announced a new tax credit to help more than 1 million small businesses hire new workers and increase wages. This tax credit would give small businesses a tax credit of up to $5,000 dollars for each new employee they add in 2010.
Speaking at the Chesapeake Machine Company in Baltimore today, President Obama highlighted the tax credit as well as the jobs bill he called on Congress to pass during his State of the Union address on Wednesday:
“The House of Representatives has passed a jobs bill that includes some of these proposals. I expect the Senate to do the same. I'm open to any good ideas from Democrats or Republicans. In fact, several members of Congress have proposed tax breaks for businesses similar to what I've proposed, and I'm looking forward to working with them. The key thing is it's time to put America back to work.”
The Washington Post has a run-down of the details:
"President Barack Obama on Friday proposed $33 billion in tax credits to coax small businesses into hiring workers as he underscored his commitment to pushing job creation to the top of his agenda.
…The latest proposal calls for a $5,000 tax credit for every net new worker hired in 2010. The amount would be capped at $500,000 per firm to make sure that the bulk of the benefits go to small businesses.
"The economy is growing but job growth is lagging," Obama told workers at a custom-machine plant in Baltimore.
He spoke after the release of data showing U.S. gross domestic product expanded at a faster-than-expected 5.7 percent in the fourth quarter, a trend he hailed as a "stark improvement" compared to economic decline a year ago.
But he insisted that more work was needed to spur employment and urged the U.S. Senate to push ahead with jobs legislation. The House of Representatives approved a $155 billion jobs bill in December.”