[Congressional Record Volume 147, Number 42 (Tuesday, March 27, 2001)]
[Extensions of Remarks]
[Page E460]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 A BILL TO PERMANENTLY EXTEND THE WORK OPPORTUNITY AND WELFARE-TO-WORK 
                  TAX CREDITS AND IMPROVE THE PROGRAMS

                                 ______
                                 

                           HON. AMO HOUGHTON

                              of new york

                    in the house of representatives

                        Tuesday, March 27, 2001

  Mr. HOUGHTON. Mr. Speaker, Today I am joined by my colleague from New 
York, Mr. Rangel, in introducing our bill, ``The Work Opportunity 
Improvement Act of 2001.'' The bill would permanently extend the Work 
Opportunity Tax Credit (WOTC) and the Welfare-to-Work Credit (W-t-W) 
and make one other change discussed below. Both programs are currently 
due to expire on December 31, 2001.
  As we reintroduce the bill to permanently extend the programs, I want 
to note how please I was to receive a report dated March 13, 2001 from 
the General Accounting Office which concluded that there is little 
evidence, if any, that employers are ``churning'' employees to take 
advantage of multiple credits. This report puts aside the churning 
charge that has surfaced in the past, and reflects favorably on the 
integrity of the programs.
  Because there have been a number of improvements in the programs over 
the past few years, they are being well received in providing 
employment, with training, for our disadvantaged. During the past five 
years, WOTC and W-t-W have been an integral part in helping over a 
million and a half low-skilled individuals dependent on public 
assistance, enter into the work force. That does not mean there can't 
be further improvements to the programs. We will continue to review the 
programs for improvements that will benefit all the parties involved.
  Such training can be costly and the credits provide an incentive to 
employers to hire the disadvantaged and provide the needed training 
while offsetting costs associated with the latter effort. Of course, 
many believe the programs would be even more successful if they could 
be extended indefinitely. We hear from both employers and state job 
services, which administer the programs, that the continued uncertainty 
surrounding short-term extensions impedes expanded participation and 
improvements in program administration. If the programs were made 
permanent, employers, both large and small, would be induced to expand 
their recruitment efforts and encourage the states to improve the 
administration of the programs. Such a change would benefit everyone.
  The other provision in the bill would expand the food stamp category 
by increasing the age limit from 24 to 50 years of age. The current 
ceiling of 24 limits the availability of individuals in this targeted 
category. There are many individuals, over the age of 24, who could be 
gainfully employed if the age limit was expanded. Currently, the 
programs do an excellent job of helping women on welfare enter into the 
workforce. Over 80% of the hires in the programs are women. However, 
men from welfare households face a greater barrier to hire because they 
are no longer eligible for welfare once they turn 18. However, they can 
qualify if they are a member of a household receiving food stamps. But 
again, the age limit on the food stamp category is 24. We believe 
increasing that age limit to 50 will provide employers an incentive to 
hire such individuals and provide them with a sense of personal 
responsibility and self-esteem in assuming their responsibility as 
parents and members of society.
  We use our colleagues to join us in cosponsoring this important 
legislation to extend and improve the two programs.

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