Smucker’s IEWOTC Act Delivers Pro-Growth, Pro-Work Agenda
Creates 350,000 New Jobs, Reduces Reliance on Safety Net Programs
WASHINGTON—The Improve and Enhance the Work Opportunity Tax Credit (IEWOTC) Act sponsored by Rep. Lloyd Smucker (PA-11), a senior member of the Committee on Ways and means, would lead to job creation and reduce reliance on safety net programs, according to a recent study.
The study indicates the enactment of IEWOTC Act would “directly support 350,000 new jobs.” Additionally, the report shows the legislation would increase federal revenue by an estimated $5.8 billion and reduce federal expenditure by an estimated $5.6 billion. It would also add $56 billion to GDP over ten years.
“The Improve and Enhance the Work Opportunity Tax Credit Act is pro-growth and pro-worker. The Work Opportunity Tax Credit is a program that supports employers and employees as they reenter the workforce. I am committed to helping disadvantaged Americans get back to work by advancing legislation to improve this proven tool,” said Rep. Lloyd Smucker (PA-11).
WOTC has not been updated since its enactment twenty-seven years ago, and its value has been eroded significantly due to inflation. The National Employment Opportunity Network reports that the WOTC has saved federal governments an estimated $202 billion over ten years.
The Improve and Enhance the Work Opportunity Tax Credit Act would:
- Update the WOTC, which has not been changed since its enactment twenty-seven years ago and encourage longer-service employment.
- Increase the current credit percentage from 40% to 50% of qualified wages.
- Add a second level of credit for employees who work 400 or more hours.
- Eliminate the arbitrary age cap at which SNAP recipients are eligible for WOTC. This change will provide an incentive to hire older workers and better align the credit with previously adopted work reforms.
Smucker introduced the legislation with his colleagues Reps. Steven Horsford (NV-4), Brian Fitzpatrick (PA-01), Mike Kelly (PA-16), Vern Buchanan (FL-16), and Tom Suozzi (NY-03). Companion legislation was introduced in the Senate by Senators Bill Cassidy, M.D. (R-LA) and Maggie Hassan (D-NH).
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