[Congressional Record Volume 147, Number 42 (Tuesday, March 27, 2001)]
[Senate]
[Pages S2994-S2995]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. JEFFORDS (for himself and Mr. Baucus):
  S. 626. A bill to amend the Internal Revenue Code of 1986 to 
permanently extend the work opportunity credit and the welfare-to-work 
credit, and for other purposes; to the Committee on Finance.
  Mr. JEFFORDS. Mr. President, today I am introducing the Work 
Opportunity Improvement Act of 2001, which

[[Page S2995]]

will permanently extend both the work opportunity tax credit and the 
welfare-to-work tax credit. The bill will also modify eligibility 
criteria for the work opportunity tax credit, to strengthen efforts to 
help fathers of children on welfare find work. Over the past five 
years, these tax credits have played a crucial role in helping 1.5 
million low-skilled, undereducated persons dependent on public 
assistance enter the work force.
  The work opportunity tax credit was first enacted in 1996, to provide 
employers with financial resources to recruit, hire, and retain 
individuals who have significant problems finding and keeping a job. 
The welfare-to-work tax credit, serving a similar purpose, was enacted 
the next year. Traditionally, employers had been reluctant to hire 
people coming off the welfare rolls, both because they tended to have 
less education and experience than other job candidates, and because 
they tended to have less education and experience than other job 
candidates, and because welfare dependence was seen as fostering a poor 
self-image and work habits. These tax credits, however, have 
demonstrated that employers can be enticed to overcome their resistance 
to hiring less skilled, economically dependent individuals. No other 
incentive or training program has been nearly as successful as these 
tax credits in encouraging employers to change their hiring practices.
  Over the past five years, government and employers have developed a 
partnership that has led to significant changes in hiring practices. 
Many employers have established outreach and recruitment programs to 
identify and target individuals whom employers could hire under these 
tax credit programs. States have made the tax credit programs more 
employer-friendly by continual improvements in the way the programs are 
administered. Still, we repeatedly hear both from employers and State 
job service agencies administering the programs that continued 
uncertainty about the programs' future impedes expanded participation 
and improvements in program administration. Making the work opportunity 
and welfare-to-work tax credits permanent would induce employers to 
expand their recruitment efforts and encourage States to commit more 
time and effort to further improve the programs. This, in turn, would 
mean that more individuals would be helped to make the jump from 
welfare dependency to work. Because these programs have proven so 
successful over the past five years, I believe they should be made 
permanent and am today introducing a bill to achieve this end.
  In addition to making these two tax provisions permanent, my bill 
will address an oversight. Currently, the work opportunity tax credit 
gives employers an incentive to hire individuals on food stamps between 
ages 18 and 24. No sound policy reason exists for not extending the tax 
credit's eligibility criteria to people on food stamps over age 25. 
Lifting the work opportunity tax credit food stamp age ceiling would 
mean that many more fathers of children on welfare could be hired under 
the credit. These individuals often face significant barriers to 
finding work. Increasing the age ceiling for food stamp recipients is 
consistent with the tax credit's underlying objectives, as many food 
stamp households include adults who are not working. Moreover, over 90 
percent of those on food stamps live below the poverty line. My bill 
will include among those eligible for the work opportunity tax credit 
persons in households receiving food stamps, as long as they are 50 
years old or younger. I believe that this will have the effect of 
making the tax credit available with respect to fathers of children on 
welfare who aren't otherwise eligible.
  I urge my colleagues to support and co-sponsor this bill.
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