[Congressional Record Volume 152, Number 43 (Thursday, April 6, 2006)]
[Extensions of Remarks]
[Page E543]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        INTRODUCTION OF THE JOBS CREATION INCENTIVE ACT OF 2006

                                 ______
                                 

                          HON. JOE KNOLLENBERG

                              of michigan

                    in the house of representatives

                        Thursday, April 6, 2006

  Mr. KNOLLENBERG. Mr. Speaker, I rise today to introduce a very 
important piece of legislation to address a very serious problem.
  Because of the policies put in place by this Congress and this 
Administration, our country has prospered and enjoyed continual 
economic successes. More than 2 million jobs have been created 
nationally in the last year and our national unemployment rate is down 
to 4.8 percent. In the last quarter alone, our GDP grew by 1.7 percent.
  However, my home state of Michigan has not yet seen this success. Our 
state economy continues to struggle, our manufacturing base is in 
serious jeopardy and our unemployment rate of 6.6 percent is one of the 
highest in the nation. The troubles of the auto industry--Michigan's 
largest employer--have forced layoffs, downsizing and cutbacks.
  Workers in my state are losing their jobs, and our unemployed face 
multiple challenges and impending statistical disadvantages.
  Mr. Speaker, that is why I am introducing this legislation today. My 
bill, the Job Creation Incentive Act, will help businesses in Michigan 
and across this country create more jobs.
  Simply put, my bill will generate jobs by giving small businesses tax 
incentives for every new employee they hire.
  It is a well known fact that collectively, small businesses are the 
number one employer in our Nation. When we encourage these small 
businesses to expand their payrolls and hire more employees, we not 
only create jobs but we also promote business development and growth.
  My bill will give companies with 100 employees or less a tax credit 
for every new employee they hire. The credit will be equal to 5 percent 
of the new employee's salary, up to $2,500 maximum, and the new 
employee must have been on the payroll for at least 960 hours--the 
equivalent of a full-time position for six months. If companies create 
multiple jobs, they can receive multiple credits up to a total of 25 
percent of their tax liability for the year.

  I know that tax incentives are not the complete answer to all of our 
economic problems in the state of Michigan. We still must work 
continually to find solutions to solve the problems within our 
manufacturing base and bring relief to our businesses and our workers.
  I also know that for some of us it may be difficult to understand 
that while America's economy is doing so well nationally, there are 
still areas where more help is greatly needed. My district is one of 
those areas.
  The Job Creation Incentive Act will help our small businesses through 
these tough times and will allow them to do what they do best--
innovate, drive economic growth, compete in the domestic and global 
marketplace, and create more jobs for American workers.
  Mr. Speaker, thank you for the time to speak on behalf of my bill, 
the Job Creation Incentive Act. I respectfully request the support of 
my colleagues for this important piece of legislation to ensure the 
future success of Michigan's economy and job growth across the country.

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