Congress Takes First Steps Toward 2013 Tax-Extenders Bill
The National Journal reported yesterday:
Legislators on Thursday unveiled a bicameral, bipartisan proposal to repeal and replace the sustainable growth rate formula, which determines Medicare payments for physicians. One expert called it “above and beyond” anything else he’s ever seen.
- Published in Work Opportunity Tax Credit
Budget Summit on the Horizon – Permanent WOTC on the Table
It is true that more important issues are currently before Congress. Nevertheless, our fiscal problems are leading Congress and the White House to an eventual sit-down meeting to hash out their very difficult differences. When that happens, current scenarios suggest WOTC will be included in that discussion. (more…)
- Published in Work Opportunity Tax Credit
WOTC Program Well-positioned for Upcoming Budget Talks
Although not new news, it’s important to reiterate. The Work Opportunity Tax Credit (or WOTC) has the stated support of the White House and the majority-party leadership in the U.S. Senate. In fact, the President’s budget proposes to make WOTC a permanent feature of the tax code (see previous posts).
With the stage now being set for budget talks, the WOTC Coalition is ready to press this issue. WOTC will be on the table for discussion. By no measure, however, is an extension a sure thing. We are approaching a key moment when WOTC proponents must intensify their lobbying efforts. (more…)
- Published in Work Opportunity Tax Credit
Coalition Pushing for WOTC in Any Budget Deal – or for a Separate Tax Extenders Bill
Proponents of a permanent Work Opportunity Tax Credit program are ready as the US House of Representatives sends a Continuing Resolution (CR) to the Senate this week. The CR offers temporary government funding and includes a provision to defund Obamacare. The Senate will not accept the OBamacare-defunding provision, which means the CR will be amended and sent back to the House, etc. etc. (more…)
- Published in Work Opportunity Tax Credit
Put on Your Lobbying Shoes – Budget Negotiations Coming Soon
This year has passed too quickly. It’s already September 10th!
Only yesterday it was 4th quarter 2012 and we were perplexed about how Congress would handle (or fail to handle) the many expired tax extenders. For patrons of the WOTC program, the time to sweat has come again. (more…)
- Published in Uncategorized, Work Opportunity Tax Credit
Latest Intel from the WOTC Coalition
Last week, the WOTC Coalition’s Paul Suplizio was busy keeping us informed while taking on two peripheral challenges valuable to our effort to make WOTC permanent. In addition to issuing Mr. Suplizio’s “Outlook and strategy” memo, which I have published below, the Coalition has also submitted formal letters to Attorney General Eric Holder and Treasury Secretary Jacob Lew on separate issues that affect the WOTC program. (more…)
- Published in Work Opportunity Tax Credit
White House Budget Proposes Permanent WOTC Tax Credit Program
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: (more…)
- Published in Veterans, Work Opportunity Tax Credit
Tax Reform on the Horizon – Battle for WOTC and Other Incentives Looms
Speaker of the US House of Representatives, John Boehner (R-Ohio) has recently repeated his vow to make comprehensive tax reform a top priority of the new Congress this year. Symbolic of that end, Speaker Boehner has reserved the designation of House Resolution 1 (HR 1) for the coming tax reform bill. (more…)
- Published in Work Opportunity Tax Credit
Sequester Noise Drowning Out Concerns for Sandy Tax Relief & WOTC . . . for Now
You may appreciate this recent update from Paul Suplizio, President of the WOTC Coalition. Paul reviews recent political exchanges and developments in connection with the sequester and observes how the sequester fight is drawing attention away from other important matters such as Hurricane Sandy tax relief.
You might recall, one form of tax relief under consideration for Hurricane Sandy victims is an expanded Work Opportunity Tax Credit for areas affected by the storm. (more…)
- Published in Work Opportunity Tax Credit
Coalition Strategy for Renewal of Expired Disconnected Youth Target Group
The Work Opportunity Tax Credit (WOTC) target group known as Disconnect Youth was created by the American Recovery and Reinvestment Tax Act of 2009. (See “New WOTC Tax Credit Opportunities Arise from Stimulus Bill”)
For purposes of WOTC eligibility, a disconnected youth is someone who at the time of hire: (1) is between the ages of 16 and 24 inclusive, (2) is not regularly attending any secondary, technical, or post-secondary school during the 6-month period prior to hire, (3) is not regularly employed during the same 6-month period, and (4) is not readily employable by reason of lacking a sufficient number of basic skills.
While very successful as part of the work opportunity program, it was also very short lived. An expiration date of December 31, 2010 was built in from its beginning. Since that time, however, many of us have held out hope that the Disconnect Youth target group would be renewed. The WOTC Coalition, among others, has been pressing for its renewal.
Early this morning, I received the following correspondence from Paul Suplizio, President of the WOTC Coalition. In it, Paul addresses current efforts to restore the Disconnected Youth target group. It is published here with permission.
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From: “Paul Suplizio”
Date: Wed, February 06, 2013 1:13 am
Subject: WOTC Disconnected Youth Target Group
February 6, 2013
Since expiration of the disconnected youth target group in 2010, our Coalition has been pressing for its restoration. “Disconnected youth,” broadly defined as youth ages 16 through 24 who are out of school and out of work, are approaching 7 million in number today. In the brief 18 months of 2009-2010 when they were a WOTC target group, 362,561 disconnected youth found jobs, and we were easily on the way to a half million a year when their target group was terminated.
Our Coalition’s efforts helped bring about appointment of an inter-agency task force, headed by OMB, in 2011, and a “request for information” was sent to around 800 government agencies and NGO’s, culminating in a webinar conference in June of last year that, regrettably, hasn’t produced much so far. Our dialogue with OMB staff has continued since that time, with the goal of getting the President to address the serious disconnected youth problem in the Fiscal Year 2014 budget, and propose WOTC as the solution.
We are enclosing a copy of our latest message to OMB, sent on January 31st.
We haven’t received a reply to this message and don’t expect one till after release of the President’s budget.
Regardless of the budget, we will go all out way for restoration of disconnected youth this year. If there’s a sequester deal between now and March 1st, we will have a chance to get in the deal. Please bring this up with your White House contacts and ask them to support it—no need to ask them to extend WOTC, just present disconnected youth as major labor force problem that needs to be addressed, that restoring it in the jobs tax credit which proved very effective in 2009-2010 makes sense and should be included in the President’s proposals.
You should also bring it to attention of Majority Leader Harry Reid, Senate Finance Committee Chairman Max Baucus, and ask other Finance Committee senators to urge Senator Baucus to get it in the Democrats’ revenue proposals for a sequester deal. Senator Reid wants revenue in any sequester bill, so if the political stars align, there may be a tax title which can carry both disconnected youth and Hurricane Sandy WOTC to passage.
If sequester doesn’t work, we’ll try again on the next tax vehicle to come along.
We will keep you informed.
PAUL E. SUPLIZIO
President, WOTC Coalition (more…)
- Published in Disconnected Youth, Work Opportunity Tax Credit