For three decades Work Opportunity Tax Credit (WOTC) program, which was originated by President Reagan, has worked without any known case of fraud or abuse, and has the reputation of being the most cost effective Federal jobs program. It works through the private marketplace, with little bureaucracy or red tape.
Its total cost is estimated by Department Of Labor to be $7 billion over 10 years for a 5-year extension during which nearly 5 million targeted workers will find jobs (based on the fiscal 2010 rate of 940,000 workers a year)— this is an average cost of $1,488 per job. WOTC works the way Congress intended: it helps workers who are chronically unemployed and have low workforce participation to find jobs and encourages others to re-enter the workforce.
Our message to The President and Congress is simply this: This economy does not need another 300 billion dollar jobs creation initiative when we already have a proven 30 – year old jobs creation credit already in place. Let’s use this opportunity to modernize what we have instead of introducing new legislation that has no history of success. We have already seen how the “Hire Act” tax credit put in place in 2010 was a failure in creating jobs. The idea of bringing it back is simply not practical. If the “Hire Act” replaces WOTC, it would punish the people who need and want jobs more than anyone else. We struggle to understand how there is a better way to help decrease America’s unemployment rolls than giving tax breaks to employers who hire the unemployed. Nothing seems to motivate businesses more than putting cash right back to their bottom line. By signing this petition we strongly support and encourage our elected officials to modernize and extend the Federal WOTC program and put American workers and the businesses that fuel this economy ahead of politics and party lines.