Federal Legislation

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Alert! Alert! WOTC on the Budget Chopping Block! Immediate Action Needed!

Tuesday, July 12th, 2011

Paul Suplizio, president of the WOTC Coalition warned coalition members this morning that the Department of Labor has recommended termination of the WOTC program as a contribution toward addressing the federal budget crisis.  Let me save time by quoting Mr. Suplizio directly:

“[President Obama] has been negotiating with congressional Republicans to identify spending cuts to reduce the deficit; those cuts would become part of a bi-partisan agreement to pass a bill to raise the debt ceiling.”

“We’ve now learned the Department of Labor has forwarded to OMB a recommendation to terminate the WOTC program, saving $700 million a year. The President asked each member of the cabinet to identify savings that could be made in their departments, and one of Labor’s answers was to terminate WOTC.”

“We’re not sure at this point whether this “saving” will make it into the final agreement with Republicans which, as everyone knows, is still being negotiated in daily meetings at the White House. There is much talk about agreement on $2 trillion in spending cuts, but as the President has said, ‘There’s no deal until there’s a deal.’”

What does this amount to? There is a POSSIBILITY that the future of the WOTC program will be eliminated by a federal budget compromise made within the next two weeks.

This issue requires your immediate action. If you’ve been following the news, you already know that the stated deadline for a compromise to raise the U.S. debt-ceiling is August 2nd.

In his evaluation this morning, Mr. Suplizio estimates only a 50 – 50 chance of WOTC’s survival if we do not act to preserve it. Quick action, however, considerably increases its chances.

The coalition is organizing grass root efforts in Washington DC at this time. Across the country, however, organizations with a stake in preserving the program should be contacting U.S. legislators from their state TODAY.

Here is a short but hot-list of specific U.S. legislators that should be contacted immediately. Again, this was provided by Paul Suplizio to the WOTC Coalition this morning.  Contact me and I can provide this list to you in a spreadsheet format that can be used for word-processor mail merge.

House Republicans

 John A. Boehner, Speaker of the House, Dayton, OH, fax 202-225-0704

Eric Cantor, Majority Leader, Culpeper, VA, fax 202-225-0011

Kevin McCarthy, Majority Whip, Bakersfield, CA fax 202-225-2908

Jeb Hensarling, Republican Conference Chair, Dallas, TX fax 202-226-4888

Tom Price, Republican Policy Committee Chair, Marietta, GA, fax 202-225-4656

Dave Camp, Chairman, Committee on Ways and Means, Troy, MI, fax 202-225-9679

 

House Democrats

Nancy Pelosi, Minority Leader, San Francisco, CA, fax 202-225-8259

Steny H. Hoyer, Minority Whip, Greenbelt, MD, fax 202-225-4300

James E. Clyburn, Assistant Democratic Leader, Columbia, SC, fax 202-225-2313

John B. Larson, Democratic Caucus Chair, Hartford, CT, fax 202-225-1031

Sander M. Levin, Ranking Minority Member, Committee on Ways and Means, Detroit, MI, fax 202-226-1033

 

Senate Republicans

 Mitch McConnell, Minority Leader, Louisville, KY, fax 202-224-2499

John Kyl, Minority Whip, Phoenix, AZ, fax 202-224-2207

Lamar Alexander, Republican Conference Chair, Nashville, TN, fax 202-228-3398

John Thune, Republican Policy Committee Chair, Rapid City, SD, fax 202-228-5429

Orrin G. Hatch, Ranking Minority Member, Committee on Finance, Salt Lake City, UT, fax 202-224-6331

 

Senate Democrats

 Harry Reid, Majority Leader, Las Vegas, NV, fax 202-224-7327

Richard J. Durbin, Majority Whip, Chicago, IL, 202-228-0400

Charles E. Schumer, Democratic Policy Committee Chair, New York, NY, fax 202-228-3027

Max Baucus, Chairman, Committee on Finance, Helena, MT, fax 202-224-9412

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HR 2082 – Bill to Extend and Refine the Work Opportunity Tax Credit Program

Thursday, June 9th, 2011

I received an update from Paul Suplizio, President of the WOTC Coalition today. There is recent progress on the legislative front for an extension of the Work Opportunity Tax Credit.

The WOTC program is currently slated to expire on December 31, 2011. While that might at first seem alarming if your company has been relying on the program to offset hiring costs, its par for the WOTC game. Over the years, Congress has repeatedly allowed the program to expire or nearly expire before renewing it for another term.

Here’s a brief quote from Paul Suplizio’s update this morning.

“Congressmen Aaron Schock (R-IL) and Charles B. Rangel (D-NY) have introduced a bill, H.R. 2082, Work Opportunity Credit Improvements Act, calling for a three-year extension of WOTC till December 31, 2014. Congressman Schock and Congressman Rangel are Ways and Means Committee members and thus able to work for passage within the committee. “

 

“This is the bill WOTC supporters should rally around as Congress takes up tax legislation in the next two critical months. It’s important we get a maximum number of House members to co-sponsor H.R. 2082 before the measure is taken up in Ways and Means.”

The bill not only proposes to extend the WOTC for 3 years, it includes a number of very interesting refinements to the program and adds back the disconnected youth category.

If you have an interest in the WOTC program, you should definitely contact your member of Congress to recommend their sponsorship of this bill.  I plan to contact our legislators next week AND to send a correspondence to every member of the legislature about this issue.

Please feel welcome to contact me if I can help your efforts in any way.  I can offer you a mail-merge ready list of US Legislators that you could use in preparing your correspondence.

Posted in Federal Legislation, Work Opportunity Tax Credit | 3 Responses »
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Small Business Encouragement Act Looks . . . Encouraging

Saturday, May 7th, 2011

The federal Small Business Encouragement Act – HR 1663, if it were to become law, would offer the largest federal hiring credit available today.  Here’s the release from the website of Rep. Allen West (FL-22).

Congressman West Introduces the Small Business Encouragement Act
(Washington)—Congressman Allen West (FL-22) announces today bipartisan legislation that will put Americans back to work by helping our nation’s most effective job creators, our small businesses. 

HR 1663- The Small Business Encouragement Act- aims at amending the Internal Revenue Code to allow small businesses who hire an unemployed American, a work opportunity tax credit, saving employers up to $12,000 a year per hire in some areas of the country.

To qualify, small businesses must have gross receipts in the preceding taxable year not exceeding $20 million, or they must employ less than 100 full time employees.

The tax credit will double for employers hiring unemployed Americans in counties with an unemployment rate that is higher than the national average, which is currently just above 9 percent.

“In my Congressional District of Florida, unemployment is still hovering around 11 percent.  This is unacceptable and the administration of President Barack Obama has offered very little solution for digging us out of this mess,” West said. ”The Small Business Encouragement Act is a simple, effective solution to putting people back to work by encouraging the very backbone of our economy, the small businesses.”

Employers seeking the tax credit will be required to hire unemployed individuals for at least one year, full-time, with a start date during or after January, 2012. The credit will also extend for employers hiring unemployed Americans in 2013.

*Members of Congress who have already co-sponsored this legislation include:
                    
 Marsha Blackburn (TN-07) 
 Joe Walsh (IL-08)
 Ron Paul (TX-14)
 Laura Richardson (CA-37)
 Scott Rigell (VA-02)
 Ileana Ros-Lehtinen (FL-18)
 Dennis Ross (FL-12) 
 C.W. Bill Young (FL-10) 
 Steve Stivers (OH-15) 
 Wm. Lacy Clay (MO-01) 

Also supported by:

Business Coalition for Fair Competition 
National Black Chamber of Commerce 
                   
                                                                ###

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More Senators Want to Reinstate Unemployed Veteran WOTC Group

Thursday, March 31st, 2011

U.S. Senator Richard Blumenthal’s (D-CT) office issued the following press release yesterday. Interest in restoring WOTG Target Group “J” (Unemployed Veteran) has been growing since the legislation that created the category expired on December 31, 2010.  Target Group K (Disconnected Youth) also expired on December 31.

While this new legislation would reinstate the tax credit, the typical WOTC certification process would be in some manner bypassed for the sake of simplicity.  Based on the news coverage and press releases I have seen, it remains unclear to me if this credit would actually be part of the WOTC regime or if it would stand alone in some way separately. 

My guess is that it will be similar to the former Hurricane Katrina victims WOTC Group, which also did not require certification.  In that case, employees simply stated on their WOTC Prescreening Form that they lived in one of the counties affected by the Hurricane Katrina disaster.  I wll follow up on this question at another time. . . .

<begin press release:

Blumenthal Joins Bipartisan Call for Veterans Employment Tax Credit

Wednesday, March 30, 2011

(Washington, DC) – U.S. Senator Richard Blumenthal (D-CT) today announced that he is supporting and cosponsoring the bipartisan VETs Jobs Bill that would reinstate a tax credit for businesses that hire veterans who have left the service within the last five years. In addition, the bill would simplify the process for employers accessing the tax credit and for service members looking to prove their veteran status.

“Courageous men and women have served and sacrificed, and they deserve a pay check instead of an unemployment line,” said Blumenthal. “The unemployment rate for our veterans remains far too high and I am proud to join in this bipartisan effort to increase veterans’ job opportunities and provide resources to them and their families.”

Nationwide, the unemployment rate among Iraq and Afghanistan veterans averaged 11.5 percent in 2010, up from about 7 percent in 2008. This number is even higher for young veterans between the ages of 18 and 24 years old. The Department of Labor estimates that at least 1 in 5 young veterans are unemployed.

The VETs Jobs Bill, or Veterans Employment Transition Act, introduced by Senator Max Baucus (D-MT), reinstates a tax credit that expired in 2010 and aims to provide financial incentives for employers who make a commitment to hiring veterans. The tax credit is worth up to $2,400 per veteran hired. 

In addition, the bill makes it easier for employers to receive the tax credit by eliminating bureaucratic hurdles and simplifies the process for veterans seeking to document their service. Currently, the process of becoming a certified veteran is lengthy and the VETs Jobs Bill would allow discharge papers to be shown to allow employers to qualify for the credit.

Other co-sponsors of the VETs Jobs Bill include Senator Jon Tester (D-MT), Senator Chuck Grassley (R-IA) and Senator Richard Burr (R-NC). The VETs Jobs Bill is supported by the Iraq and Afghanistan Veterans of America (IAVA), the National Guard Association, and the Veterans of Foreign Wars.

# # #

Press Contact

Ty Matsdorf or Kate Hansen, (202) 224-2823
Ty_Matsdorf@blumenthal.senate.gov; Kate_Hansen@blumenthal.senate.gov

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Good News! WOTC Program Reauthorization Included in White House’s 2012 Budget

Monday, February 14th, 2011

A delegation from the WOTC Coalition visited the Whitehouse on Friday where they met with Special Assistant to the President Kareem A. Dale and Domestic Policy Council member Lauren Dunn. Their goal was to obtain White House support for reauthorization of the federal Work Opportunity Tax Credit (WOTC) program. The mission was a clear success.

I received a correspondence today from Coalition President Paul Suplizio in which he described their meeting.

“We covered a great deal during the 45-minute meeting, and in many respects the White House staff was responsive to our appeal for a long-term authorization, funds to promote WOTC to more employers, restoration of disconnected youth and veterans target groups, and eligibility for disabled workers who are receiving Social Security Disability Income (SSDI).”

The group also presented a fact sheet titled, “How Can the Work Opportunity Tax Credit be Made More Effective?”

Today, in an email to Paul Suplizio, Mr. Dale confirmed that WOTC reauthorization has been included in President Obama’s 2012 budget proposal. Mr. Dale also said he looks forward to working with WOTC Coalition members on proposals to create more certainty.

The tax code as currently written requires frequent reauthorization of the WOTC program by Congress and the President. This has been a problem that introduces uncertainty and instability for employers attempting to use the programs.

The WOTC program was recently extended through December 31, 2011. Making the program permanent has been a long-term goal of program supporters.

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Renew Unemployed Vet WOTC Group and Create Iraq and Afghanistan Vet Tax Credit

Tuesday, February 8th, 2011

Democrat Congressman Peter Welch (Vermont) announced legislation on Monday that would renew the Unemployed Veteran WOTC target group, which expired on December 31, 2010. The Veterans Employment Tax Credit Act would provide a $2,400 tax credit when businesses hire a veteran released within the past 5 years who has received unemployment benefits for at least 4 weeks during the 12 months prior to hire.

Congressman Welch also announces that he will co-sponsor a bill by Republican Congressman Peter King (New York) that would provide a tax credit to businesses that hire veterans of the Iraq and Afghanistan wars.

The announcements were made on location at an unnamed Vermont business.

Read the full press release on the Congressman’s website.

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President Signed Off on the Tax Bill

Sunday, December 19th, 2010

It was such big news; I put off posting it for a couple of days.

Although there were some hiccups, the US House of Representatives passed the Senate version of the tax bill on Thursday without amendments. President Obama signed the bill on Friday. For now, it is done.

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Fight Is Over For Now – Missing Tax Incentives To Stay Missing

Thursday, December 16th, 2010

The US House is schedule to vote on the tax bill today. The House Rules Committee, however, is allowing a vote on only one proposed amendment – an amendment to increase the estate tax. The rule allows no other motions or amendments on the bill.

While we hoped for an extension of the HIRE Act payroll tax exemption, that program will end for new hires (as it was originally scheduled) on December 31. Do not forget, however, that the HIRE Act’s worker-retention tax credit remains in play — many employees who qualified for the payroll tax exemption in 2010 will generate an additional income tax credit for their employer in 2011 after working for 52 weeks.

Some employers who participate in the Work Opportunity Tax Credit (WOTC) program will experience a small decrease in qualifications in 2011 as the Disconnected Youth and Unemployed Veteran target groups also expire. We are consoled, however, by the fact that the WOTC program itself has been renewed through 2011.

So, far now — for now — the fight is temporarily over. In 2011, we will be working with the new Congress to renew and extend as many of these provisions as feasible.  If you’re interested in joining the WOTC Coalition and playing some role in the effort, contact Paul Suplizio, President of the WOTC Coalition.  Visit the Coalition’s website at www.WOTCCoalition.com.

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U.S. Senate Passes Tax Bill – Eyes Turn to House to Please Add Back Missing Tax Incentives!

Wednesday, December 15th, 2010

The Senate today passed the much anticipated tax bill without renewing the HIRE Act Payroll Tax Exemption, federal Renewal Communities, or the WOTC provisions for disconnected youth, unemployed veterans, or Gulf Opportunity Zone employers.  This is a disappointment, but not unexpected. 

Now that HR 4853 has been passed to the U.S. House of Representatives, eyes turn to susceptible House members seeking an amendment to add these provisions.  If these incentives are important to you, please consider contacting House Members from your jurisdictions and urge them to support including these 5 provisions with any amendments to the tax bill.  Make a special effort to contact Ways and Means Chairman Sander Levin.

Paul Suplizio, President of the WOTC Coalition, pointed out today that these 5 programs are “current-law job creation incentives” — so we are not urging the creation of any new program.  In summary, what we seek:

  1. Extension of the HIRE tax credits
  2. Extension of the Renewal Community program
  3. Extension of WOTC for disconnected youth
  4. Extension of WOTC for unemployed Iraq-Afghanistan era veterans
  5. Extension of WOTC for Gulf Opportunity Zone employers

On the bright side, the bill passed by the Senate does include reauthorization of:

  • The WOTC Program through 2011
  • The Research and Development Tax Credit
  • The Indian Employment Credit
  • The Empowerment Zone Program
  • The District of Columbia Enterprise Zone

See my previous post on this.

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Asking the US House to Include Key Tax Incentives in House Amendment

Monday, December 13th, 2010

As noted in my most recent post, some key employment incentives were left out of the Senate version of the tax bill being discussed in Washington D.C.  I received a correspondence today from Paul Suplizio, President of the WOTC Coalition, detailing current efforts to include the missing programs in the House version of the bill.

Specifically, the WOTC Coalition is urging that the following be included in the House bill if the opportunity for amendment materializes.

  • Reauthorization of the HIRE Act’s Payroll Tax Exemption for Employers
  • Reauthorization of Renewal Communities
  • Continuation of Disconnected Youth as a WOTC targeted group
  • Continuation the Unemployed Veterans as WOTC targeted group
  • Continuation of WOTC for Gulf Opportunity Zone employers

Efforts at persuasion are focused on Representative Sander Levin, Chairman of the House Committee on Ways and Means and Senator Max Baucus, Chairman of the Senate Committee on Finance. 

Representative Charles B. Rangel, a known expert and champion of the WOTC program within the House of Representatives has also been contacted with the hope that he will use his expertise to help persuade the Chairman to include these items in any amendment to the bill.

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