Senate approves tax breaks for new hires

Senate approves tax breaks for new hires
By ANDREW TAYLOR, Associated Press Writer Andrew Taylor, Associated Press Writer – 1 hr 27 mins ago


WASHINGTON – Companies that hire the unemployed would claim new tax breaks under a jobs-promoting bill the Senate passed Wednesday, delivering President Barack Obama and Democrats a much-needed victory.

The 70-28 vote sends the bill back to the House, which passed a far more costly measure in December. Many in the House consider the Senate bill too puny, but they may simply adopt it and send it to Obama in order to get a win. Democratic leaders promise more so-called jobs bills are on the way.

It's the first major bill to pass the Senate since the Christmas Eve passage of a deeply controversial health care bill and the subsequent election of Massachusetts Republican Scott Brown, which rocked Democrats by demonstrating their falling standing even among heavily Democratic voters.

The bill contain two major provisions. First, it would exempt businesses hiring the unemployed from the 6.2 percent Social Security payroll tax through December and give them an additional $1,000 credit if new workers stay on the job a full year. The Social Security trust funds would be reimbursed for the lost revenue.

Second, it would extend highway and mass transit programs through the end of the year and pump $20 billion into them in time for the spring construction season. The money would make up for lower-than-expected gasoline tax revenues.

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