Introduction Of The Jobs Creation Incentive Act Of 2006
Mr. Speaker, I rise today to introduce a very important piece of legislation to address a very serious problem. Because of the policies put in place by this Congress and this Administration, our country has prospered and enjoyed continual…
Mr. Speaker, I rise today to introduce a very important piece of legislation to address a very serious problem.
Because of the policies put in place by this Congress and this Administration, our country has prospered and enjoyed continual economic successes. More than 2 million jobs have been created nationally in the last year and our national unemployment rate is down to 4.8 percent. In the last quarter alone, our GDP grew by 1.7 percent.
However, my home state of Michigan has not yet seen this success. Our state economy continues to struggle, our manufacturing base is in serious jeopardy and our unemployment rate of 6.6 percent is one of the highest in the nation. The troubles of the auto industry--Michigan's largest employer--have forced layoffs, downsizing and cutbacks.
Workers in my state are losing their jobs, and our unemployed face multiple challenges and impending statistical disadvantages.
Mr. Speaker, that is why I am introducing this legislation today. My bill, the Job Creation Incentive Act, will help businesses in Michigan and across this country create more jobs.
Simply put, my bill will generate jobs by giving small businesses tax incentives for every new employee they hire.
It is a well known fact that collectively, small businesses are the number one employer in our Nation. When we encourage these small businesses to expand their payrolls and hire more employees, we not only create jobs but we also promote business development and growth.
My bill will give companies with 100 employees or less a tax credit for every new employee they hire. The credit will be equal to 5 percent of the new employee's salary, up to $2,500 maximum, and the new employee must have been on the payroll for at least 960 hours--the equivalent of a full-time position for six months. If companies create multiple jobs, they can receive multiple credits up to a total of 25 percent of their tax liability for the year.
I know that tax incentives are not the complete answer to all of our economic problems in the state of Michigan. We still must work continually to find solutions to solve the problems within our manufacturing base and bring relief to our businesses and our workers.
I also know that for some of us it may be difficult to understand that while America's economy is doing so well nationally, there are still areas where more help is greatly needed. My district is one of those areas.
The Job Creation Incentive Act will help our small businesses through these tough times and will allow them to do what they do best-- innovate, drive economic growth, compete in the domestic and global marketplace, and create more jobs for American workers.
Mr. Speaker, thank you for the time to speak on behalf of my bill, the Job Creation Incentive Act. I respectfully request the support of my colleagues for this important piece of legislation to ensure the future success of Michigan's economy and job growth across the country.