Last summer, the House Subcommittee on Select Revenue Measures held hearings to explore HOW to evaluate the numerous tax extenders coming before Congress each year. Chairman of the Subcommittee, Congressman Pat Tiberi (R-OH) explained at the time:
“[We] need to consider carefully the principles that we should use to evaluate the merits of these policies. Having recently heard from our House colleagues about their views on many of these extenders, it is time for the Subcommittee Members to roll up their sleeves and see how the provisions stack up against what experts consider the principles of sound tax policy.”
Ultimately, some programs should be made permanent while those not worthy of permanence should be eliminated altogether.
A loose consensus has existed among observers that the Work Opportunity Tax Credit (WOTC) program would be a strong candidate for permanence. The Obama Administrative this week has cast its vote on that issue.
On page 33 of the Fiscal Year 2014 Budget of the U.S. Government we find this little jewel. (Thank you to Paul Suplizio, President of the WOTC Coalition, who pointed this out in a coalition email early this week.)
The Administration also continues its support of tax credits that will help employ veterans. The Returning Heroes Tax Credit, which provides up to $5,600 to employers, and the Wounded Warrior Tax Credit, which provides up to $9,600 to hire long-term unemployed veterans with service-connected disabilities, were recently extended for one more year in the American Taxpayer Relief Act of 2012. These credits are a part of the Work Opportunity Tax Credit (WOTC), which contains other categories targeted to hiring veterans. The Budget proposes to permanently extend the WOTC.
FYI, the WOTC program is not directly mentioned again anywhere within the 244 page budget document.
