Companies that hire the unemployed would claim new tax breaks under a jobs-promoting bill the Senate passed Wednesday, delivering President Barack Obama and Democrats a much-needed victory.
The 70-28 vote sends the bill back to the House, which passed a far more costly measure in December. Many in the House consider the Senate bill too puny, but they may simply adopt it and send it to Obama in order to get a win. Democratic leaders promise more so-called jobs bills are on the way.
The bill contain two major provisions. First, it would exempt businesses hiring the unemployed from the 6.2 percent Social Security payroll tax through December and give them an additional $1,000 credit if new workers stay on the job a full year.
Second, it would extend highway and mass transit programs through the end of the year and pump $20 billion into them in time for the spring construction season. The money would make up for lower-than-expected gasoline tax revenues.
The Senate's $35 billion proposal is a far smaller measure than the $862 billion economic stimulus bill enacted a year ago.
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