[Congressional Record Volume 144, Number 51 (Thursday, April 30, 1998)]
[Senate]
[Page S3936]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. JOHNSON:
  S. 2018. A bill to amend the Internal Revenue Code of 1986 to extend 
the work opportunity tax credit to employers providing employment in 
economically distressed communities; to the Committee on Finance.


                The Reemployment Tax Credit Act of 1998

  Mr. JOHNSON. Mr. President I am pleased to introduce legislation 
today that will foster job growth and job creation in distressed 
communities. This important legislation, the ``Reemployment Tax Credit 
Act of 1988,'' will provide needed assistance to communities when they 
are impacted by significant job losses.
  Twice in the last year, communities in my state have suffered the 
difficult repercussions of massive job losses in the area. The 
circumstances in Huron and those in the Northern Hills region differed 
considerably, however, in both instances the job losses affected far 
reaching elements of the local economy. I proudly introduce this 
legislation to enhance the ability of distressed communities to address 
the challenges of sudden economic dislocation.
  This bill will extend the existing Work Opportunity Tax Credit to 
include dislocated workers affected by plant closings or other events 
resulting in extensive job losses. This tax credit accelerates 
opportunities for business growth and expansion in distressed 
communities therefore decreasing unemployment insurance expenditures, 
reducing the flight of dislocated workers, allowing families to remain 
in their community and in their homes. It serves to stabilize the local 
economy and minimize the negative impacts on other local businesses.
  The most successful and immediate action to address economic 
dislocation is to reemploy workers. The Reemployment Tax Credit Act of 
1998 will make a serious and positive impact on the growth and 
prosperity of our communities. I urge my colleagues to support this 
effort to provide distressed communities with this critical assistance 
to help them recover from extraordinary economic hardship.
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