What to do with unemployment this is the big question Congress is asking. The unemployment rate increase since October. After taking care of the Health care reform they are planning to pass a job stimilus.
These are some ideas that are being discuss in congress:
1. To offer a payroll tax holiday, by temporarily suspending the payroll tax that is up 12.4% this will allow employers to hire new workers with the extra money. Yet Congress doubts that employers will use the money to hire people.
2. Create a new jobs hiring credit; this allows the employers to get money for every person they hire, for example if the employer hires 3 people he will get $3,000 - $5,000 per hire person. Yet Congress doesn't want to pass it because they have pitfalls.
3. Help close local and state budget shortfalls, if done as the unemployment rate is rising states are loosing revenue leaving them with budget deficits.
4. Offer public-service employment; this means they could create new public-service jobs these jobs will have to at the state and local level but they already have 1.4 million employees if the federal goverment would make new public service jobs that number will double.
What to do is difficult for Congress to decide everything suggestion always have pitfalls. Hopefully Congress finds a way to balance out the unemployment rate.
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