Communications of the ACM
Obama Jobs Plan: How IT Workers Will Benefit
President Obama talked about the importance of reforming the corporate tax code and closing loopholes to give American companies more incentive to "keep jobs in America."
Credit: The Associated Press
IT workers who've been unemployed for more than six months may benefit from the job creation plan President Barack Obama recently unveiled in a speech to Congress. If passed, the American Jobs Act would provide employers with a $4,000 tax credit for hiring someone who's been unemployed for more than six months. According to the Bureau of Labor Statistics, more than six million Americans make up the long-term unemployed, people who have been jobless for 27 weeks or more. In addition to helping the long-term unemployed, the American Jobs Act will make it more attractive for smaller businesses to hire new IT workers.
To promote hiring, the American Jobs Act would provide an additional tax cut to any business that hires new employees or increases existing employees' wages. To stimulate the economy, payroll taxes would be cut in half for every working American and every small business so that people have more money in their checks on payday. IT workers who are veterans would also benefit from Obama's job creation plan, which proposes a $5,600 tax credit for companies that hire unemployed vets. Employers that hire veterans with a service-related disability would be eligible for a $9,600 tax credit under Obama's plan. According to the President's Sept. 8 speech to Congress, 877,000 vets are currently unemployed and looking for work.
While Obama's job creation plan didn't specifically address America's high-tech workforce, President Obama discussed the need for additional legislation that, if passed, would have a direct impact on IT workers. Specifically, the President expressed his desire to reduce the red tape that prevents startups from raising capital and going public. The many tech companies filing for IPOs would certainly benefit from such legislation, which would ultimately lead to the creation of a greater number of IT jobs more quickly. Obama also wants to see reforms passed that would speed up the outdated patent process so that entrepreneurs can turn a new idea into a new business as quickly as possible. Finally, the President noted two initiatives created by his Jobs Council that are currently under way: an effort to train 10,000 engineers each year, and tuition coverage for workers who seek training at community colleges.
From CIO.com
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