[Congressional Record Volume 148, Number 15 (Friday, February 15, 2002)]
[Extensions of Remarks]
[Pages E176-E177]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                WORKER RETRAINING INCENTIVE ACT OF 2002

                                 ______
                                 

                        HON. JOHN ELIAS BALDACCI

                                of maine

                    in the house of representatives

                      Thursday, February 14, 2002

  Mr. BALDACCI. Mr. Speaker, America's workers are facing tremendous 
pressures. Import competition continues to erode vital industries that 
are the economic foundation of communities across the country. At the 
same time, new jobs are increasingly hard to come by in the midst of a 
recession, especially jobs with good wages.
  The Trade Adjustment Assistance Program was designed to help workers 
who are caught up in these forces and lose their jobs. It provides 
assistance so that these workers may seek training to gain new skills, 
and launch themselves onto a more stable and prosperous career path. 
This program serves a

[[Page E177]]

wonderful purpose: it helps people to help themselves. It is not a 
handout, but rather a helping hand for anyone who had had a tough 
break, and wants to take charge of their future. Providing training 
opportunities is the best way to educate our work force, and help 
assure them better jobs and better lives.
  Unfortunately, retraining is not always as attractive as it should 
be. The job placement rate for retrained TAA recipients is only 79 
percent. The wage for those who do find jobs is only 81 percent of 
their previous salary in the first year. Under these circumstances, it 
is hard to convince a displaced worker that he or she is better off 
investing in a retraining program when getting a job in a new field 
appears to be a gamble, and a gamble with a low reward at that.
  The shame of this situation is that the long-term prospects for 
retrained workers are much better than initial outcomes would make it 
appear. While the Department of Labor does not compile systematic data 
on job outcomes, state placement agents say that both wages and job 
stability are greatly enhanced within two to three years of retraining. 
What workers need is a bridge across that initial rocky period when 
wages are low and job placement is uncertain. That bridge leads to a 
better future, if only we can help them cross it.
  This bill would create that bridge. It would implement an income tax 
credit equal to the Social Security payroll tax--OASDI--for both 
employers and employees, after workers have completed training through 
TAA. Both employees and the companies that hire them could claim the 
credit for the first year of employment for any worker whose salary is 
below $60,000.
  This bill would provide a crucial incentive for companies to hire 
retrained workers. Tying the income tax credit to the amount of the 
payroll tax makes the cost savings easily identifiable and attractive 
to businesses. At the same time, workers would get a badly needed 
salary supplement. This bill would make the prospect of retraining much 
more attractive for someone who has lost his or her job: they would 
know that businesses would be looking to hire them, and at a salary 
that is worth seeking.
  I have always believed that the surest way to help our workers, and 
to help our economy, is to give people the best possible opportunity to 
compete and improve their lives. This bill helps businesses to invest 
in people, and helps people to invest in themselves.

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