Senate Finance Committee chairman Max Baucus, D-Mont., and Sen. Jon Tester, D-Mont., have introduced legislation that would expand an existing tax credit for hiring veterans to encourage further hiring while making it easier for business claim.
Max Baucus
The Veteran Employment Transition Act of 2013 aims to combat unemployment among veterans by allowing employers to claim a $2,400 tax credit when hiring any recently discharged veteran and streamlining the certification process for both veterans and businesses.
“After defending our nation on the battlefield, all too many veterans are facing a new battle when they come home — the battle to find good paying jobs,” Baucus said in a statement. “This bill will be a big boost for veterans of Iraq and Afghanistan, making it easier for business owners in Montana and across the country to fill job openings with hard-working vets. Our veterans are intelligent, qualified and proven leaders, and this is our chance to fight for them on the home front.”
The national unemployment rate among post-9/11 veterans was 10.8 percent in December – far higher than the overall rate of 7.8 percent. In some states, such as Baucus’s home state of Montana, which has the second-highest population of veterans per capita of any state, the post-9/11 vet unemployment rate was as high as 17.5 percent.
The legislation Baucus introduced Friday, improves the existing Work Opportunity Tax Credit for employers by allowing them to claim a $2,400 credit when they hire any veteran discharged within the last five years. The bill also makes the process for employers to qualify for the tax credit even simple. Veterans would only have to show their discharge papers to demonstrate they were discharged no more than five years before being hired. Under the current rules, employers have to verify a set of criteria with their individual states’ employment agencies before they can claim the credit.
Baucus authored the original credit for hiring unemployed vets in early 2009, along with as its 2011 expansion and its extension earlier this year. When the original tax credit was enacted, Baucus promised to continue working to cut red tape and make the process simpler, which the bill aims to do.
The bill would also help veterans earn certifications and licenses when they return home for skills they learned while serving in the military. The legislation calls for better coordination between the six different veteran unemployment programs in the Departments of Veterans’ Affairs and Labor, and it compels executive agencies to award contracts to small businesses owned by disabled veterans. Baucus’s fellow Montana Senator, Jon Tester, who is a member of the Veterans’ Affairs Committee, is co-sponsoring the bill.
3 Comments
@Eugene I normally don't comment, but I felt that your statement of "The legislation will help business to discriminate against non-veterans. It is bad tax policy that will only make long term unemployment worse for others." warranted a response.
Last time I checked, less than 10% of the population are veterans. So, to say that 10% is somehow going to take much away from the other 90% is just wrong. In addition, part of the reason that unemployment amongst veterans is so high is because of discrimination. People have stereotypical ideas of veterans which they let affect their opinion of the hiring candidate. Another problem is that military skills don't always translate well to the civilian world - so veterans deserve something that will encourage an employer to take a second look.
Finally, people don't need a law to help them discriminate. If an employer doesn't want to employ you for some reason other than your qualifications, they will find an excuse to pass you over.
Posted by: DFisher | January 28, 2013 11:27 AM
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The legislation will help business to discriminate against non-veterans. It is bad tax policy that will only make long term unemployment worse for others.
Some believe the overall economy would grow a lot faster if there was full employment and increased economic mobility. This could be achieved with the simple guarantee of a part time job for every man and woman that needs one. Local governments and not-for-profit entities could employ people and provide on-the-job training and supervision which would help workers transition to private jobs. The key assumption is that underemployment has far fewer social costs than unemployment.
The entire $50 billion program could be funded with the elimination of tax expenditures for charitable giving. This is perhaps the tax loophole that is needed the least. Obviously the donors don't "need" the deduction since they are in a position to give away their money. It is also unclear why the government and other taxpayers should subsidize taking money that could be used for investment in business and private jobs and giving it to all manner of not-for-profit groups that have diverse political agenda and promote foreign causes. For those concerned that charitable giving might be reduced if it is not subsidized by the tax code keep in mind that any reduction would be offset by free labor. It is also important to understand that the tax code has caused the not-for-profit sector to swell to $2.7 trillion in net wealth. Thus the not-for-profit sector has accumulated five time the assets of half the country and proves that these charities have not done a very good job helping those in need.
Posted by: Eugene Patrick Devany | January 28, 2013 10:54 AM
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"The legislation calls for better coordination between the six different veteran unemployment programs..." guys! they do not give too much but they still remember about your difficulties.
Posted by: nadezdamindyuk | January 28, 2013 8:48 AM
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