US Treasury links 4.5 mln new hires to tax credits

WASHINGTON, July 12 (BestGrowthStock) – The U.S. Treasury said on
Monday that from February to May an estimated 4.5 million
workers were hired by businesses that are eligible to receive
up to $8.5 billion in tax exemptions and credits under an Obama
administration stimulus program.

The estimates were released to highlight the Hiring
Incentives to Restore Employment (HIRE) Act, which was signed
into law in March and provides payroll tax exemptions and other
credits to firms that hire people who have been unemployed for
eight weeks or longer.

The Treasury study did not specify whether the 4.5 million
workers were hired because of the tax credits or simply because
the economy was starting to recover. It only estimates the
number of workers unemployed for 60 days hired by employers
that were eligible for the payroll tax exemption.

It said if these workers were to remain employed for the
rest of the year, the employers would be eligible for an
estimated $5.1 billion in payroll tax savings under HIRE Act.
If three quarters of the newly hired workers remain employed
for 52 weeks, then their employers would receive another $3.4
billion in tax credits.
(Reporting by David Lawder; Editing by Padraic Cassidy)

US Treasury links 4.5 mln new hires to tax credits