Tuesday, August 3, 2010

Extension of High-Income Tax Cuts Would Benefit Few Small Businesses; Jobs Tax Credit Would Be Better

Center on Budget and Policy Priorities

Extension of High-Income Tax Cuts Would Benefit Few Small Businesses; Jobs Tax Credit Would Be Better

By Chuck Marr and Gillian Brunet

"Policymakers who are rightly concerned that nearly one in ten Americans cannot find a job should allow the high-income tax cuts to expire on schedule and channel the resulting revenues in the first year to a robust job-creation tax credit.  The Congressional Budget Office estimates that a cut in employer payroll taxes for firms that hire more workers would create four to eight times as many jobs per dollar of cost as extending the high-end tax cuts.  Moreover, such a tax credit would be strictly temporary and thus would add only negligible amounts to long-term deficits."

View the full report:
http://www.cbpp.org/cms/index.cfm?fa=view&id=3251
http://www.cbpp.org/files/8-3-10tax.pdf 6pp.

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