New tax incentive for businesses: hiring the unemployed

Published: 8:00 PM EDT Sep 20, 2012   Updated: 5:12 AM EDT Sep 21, 2012

To help boost employment numbers in their state, New Jersey senators Steve Sweeney and Rob Gordon have introduced a bill that provides business owners with a tax incentive if they hire more people.

Under a recently introduced bill titled the "New Jobs for New Jersey Act" any business that hires a full-time employee for an entire year and who had been out of work for at least a month, becomes eligible for a tax credit on their payroll taxes.

Business owners in Phillipsburg say they like the idea.

“I think it would be good. Anything to help small businesses to get ahead and save a couple of bucks and to help people out who need jobs is a good idea,” said Franklin Miller, owner of The Ice Cream Junction.

Randip Singh whose family owns Paul Mart said, “I think it's a win-win, because business owners get the employment and the employee that's been jobless for a while will get money to spend for his essentials and we get the tax cut which is always needed in a business.”

Spokesman for Senate Republicans, Adam Bauer told they cannot commit to a bill they haven't seen any cost estimates for, but said "it's certainly along the lines of something Republican senators could support."