Sherry Koonce
The Port Arthur News
—
Though it may not go far enough to turn around Port Arthur’s spiraling unemployment rate, the jobs bill approved by Congress Wednesday should at least offer employers added incentive to start hiring again. Companies that hire unemployed workers can take advantage of a temporary tax break available from the jobs bill. “Right now anything is better than nothing,” Marilyn Smith, executive director of the Southeast Texas Workforce Solutions office, said. The bipartisan 68-29 vote in the Senate sends the legislation to the White House where President Barack Obama has promised to sign it into law, the Associated Press reported Wednesday. The bill contains about $18 billion in tax breaks and a $20 billion cash infusion for highway and transit programs. The bill exempts businesses that hire the unemployed from paying the 6.2 percent Social Security payroll tax through December. Lost Social Security revenue will be reimbursed by taxpayers. Also included in the bill is $20 billion to extend highway and mass transit programs through the end of the year. That money, according to the AP, would make up for lower-than-expected gasoline tax revenues. Joe Deshotel, District 3 State Representative, said he is hopeful the bill will bring jobs to Southeast Texas, especially the Port Arthur area where January unemployment rates reached 15.3 percent. February rates will be released next week, but are not expected to substantially change. “Employers are looking for any type of help. I am sure employers will take advantage of these incentives. Because the economy is so tight right now, it should be a significant help,” Deshotel said. In addition to offering employers hiring tax incentives and providing added highway funding, the jobs bill extends a tax break for small businesses buying new equipment while expanding an initiative that helps state and local governments finance infrastructure projects. Smith said with the economy still depressed, local employers are reluctant to hire additional staff even if they are needed. “This bill is written to try and keep employers from being skittish about hiring in this economy,” Smith said. Lately, the local Workforce offices are filled with record numbers of unemployed workers. Unless something drastic changes that trend likely will continue, Smith said. “There is some movement out there, but we are not seeing a lot of jobs opening up,” she said. “This jobs bill is better than nothing; hopefully it will be enough to create some jobs. We will just have to wait and see.” Lisa Givens, deputy director of communications for the Texas Workforce Center’s Austin office said the state offers other incentive programs that have been successful in creating jobs. “I think this will compound opportunities employers have right now to take advantage of staffing up their workforce. This might give extra incentive,” she said. Though it would add $13 billion to the federal debt in the next three years, much of the jobs bill will be financed over the next 10 years by cracking down on offshore tax havens, the AP reported. skoonce@panews.com