HR4620: Will Bill Help Reduce Unemployment Rate?

Introduced into the House in early February, HR4620, aka, The Small Business Job Creation Act of 2010, will provide tax credits for small businesses who hire people who were previously unemployed.

For a business to qualify, annual revenue must be less than $20 million and their staff must be under 200 full-time employees.

The participating business benefits with a tax credit of 7.5 percent of wages earned by an employee in 2010, and 5 percent in 2011, applicable to the first $75,000 of an employee's salary.  If the small business in in a county where the unemployment rate is higher than the national rate, a tax credit of 15 percent in 2010, and 10 percent in 2011, will be issued.

The bill sounds like it could give small businesses the push they need to beef up staff.  But don't celebrate yet.  The bill still needs to pass a House and Senate vote, along with  President Obama's signature to be signed into law.

Comments

[Small Bus]

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[Lee Kariuki]

The HR4620 is a wonderful incentive to hire new employees but won't necessary reduce unemployment! Unemployment has been caused by more than one factor for just one "magic bullet" to solve everything! To reduce unemployment the first thing that needs to be addressed is what cause it!
1. Bad bank loans
2. Corporate Fraud
3. Keeping up with the Jones-Instant Gratification in society
4. Diminishing Utility in Our education system- relevance to changing times
5. Change in the way business is conducted
6. Competitive overseas markets
7. Implementation of Systems
8. Fear from investors
and we can continue to find as many reasons as possible! The way we can reduce this international dilemma is upon listing the causes, find at three or four that contributed or continue to contribute the highest impact! Have a plan to solve these problems first and then monitor the ripple effect! One thing we do have to agree on though is that there isn't one "golden" solution that will solve this crisis and this time, almost a multivariable analysis has to be done...

[Phil H]

HR4620 will go a long way to help reduce the unemployment rate. Afterall, small businesses as a group are the largest employers in this country.

[Domene Webhotell]

Unemployment is a very important thing to get rid of. Nothing will criple a country as much as that. The HR4620 is a very good idea. Keep it up!!

[Scoremore]

this is a very helpful program if ever that the House of Senate will agree on this and President Obama will approved on this.it's a big help to those unemployed,it's a crisis.count my vote in,i'm looking forward for the result if it's already approved by the House of Senate.thanks for sharing this.

[Small B]

I think it would help. Certainly can't hurt at all.

[Phil S.]

The current administration knows that we need to boost small business investment and I believe they are doing everything in their ability to push through legislation to accomodate this. The recent passage of the extended tax breaks is a positive sign and recent programs out of the SBA are encouraging as well.

While unemployment is backing off a tad and big business is starting to hire again, small businesses have been reluctant, understandably so, to jump back in the hiring pool. While tax credits could help, unless they are getting the workers for absolutely no cost I think SMB will continue to drag their feet when it comes to adding overhead until we see very strong signs that we made it through the storm.

Phil
http://www.localinternetmarketingstrategist.com/

[John Peters]

Yes, I agree. I believe that the current administration can able to overcome the crisis we had.