Hiring credits could boost California's unemployed
Employee recruiting in California has stagnated due to one of the nation's highest unemployment rates. However, advocates of one tax plan say that hiring credits could improve the state's vast joblessness problem.
The Public Policy Institute of California states that the earned income tax credit would cut unemployment while helping make businesses more profitable by rewarding them with a tax break for hiring an unemployed worker.
The policy center's report also included a look at two different initiatives that could spur job growth - subsidies to employers and tax benefits to individuals to get back into the labor market, the Central Valley Business Times reports.
"California needs a flexible approach to help cushion the state from the kind of blow it suffered in this recession," David Neumark, PPIC Bren Fellow and professor of economics at UC Irvine told the publication. "Policymakers should consider a hiring credit that remains on the books permanently, aggressively rewards the hiring of unemployed workers during downturns and turns off in better economic times.”
California currently faces a 12.4 percent unemployment rate, a figure that has increased by 0.5 percent since October 2010. The state has not possessed a single-digit unemployment rate since late 2008.
The Public Policy Institute of California states that the earned income tax credit would cut unemployment while helping make businesses more profitable by rewarding them with a tax break for hiring an unemployed worker.
The policy center's report also included a look at two different initiatives that could spur job growth - subsidies to employers and tax benefits to individuals to get back into the labor market, the Central Valley Business Times reports.
"California needs a flexible approach to help cushion the state from the kind of blow it suffered in this recession," David Neumark, PPIC Bren Fellow and professor of economics at UC Irvine told the publication. "Policymakers should consider a hiring credit that remains on the books permanently, aggressively rewards the hiring of unemployed workers during downturns and turns off in better economic times.”
California currently faces a 12.4 percent unemployment rate, a figure that has increased by 0.5 percent since October 2010. The state has not possessed a single-digit unemployment rate since late 2008.
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