By Andrew Kitchenman
Originally Posted on NJBiz.com - February 25, 2010
A $15 billion federal bill that would provide incentives for businesses to hire the unemployed is getting a mixed response from New Jersey business owners.
The bill, which was passed by the U.S. Senate on Wednesday, would pay for highway projects, business-payroll tax deductions for new hires and tax credits for business capital investment.
Barbara Chirico, chief executive officer of Woodbridge-based Gem Limousine, said the bill is a "very positive step" due to the need to create jobs.
While she said it would be a positive for the businesses that receive the tax incentives, she said the amount of the incentive - $1,000 per new hire - would not be enough to affect her hiring decisions.
"If you need to hire someone, you're going to hire them anyway," regardless of the incentives, Chirico said.
Frank Wyckoff, president of Snelling Staffing - The Wyckoff Group, of Eatontown, denounced the bill, saying it failed to include necessary tax cuts available in earlier versions.
"It's not up to the government to interfere with businesses and attempt to create jobs, but rather, it's their responsibility to create an environment where jobs can flourish," Wyckoff said.
Don Mallo, vice president of human resources and counsel for Woodbridge professional employer organization Extensis Group, compared the federal bill to a similar program in New Jersey, InvestNJ. The effectiveness of that program, which provided $3,000 per new hire, was
hampered both by limited state funding and restrictions on businesses, Mallo said.
"I don't know if the perceived incentive ... would be a significant inducement to have the small business go out and hire a person," Mallo said. InvestNJ was among the cuts in state spending announced earlier in the month by Gov. Chris Christie.
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