Big Ideas for Job Creation: Rethinking Work Opportunity

From Tax Credits to Subsidized Job Placements

By CLASP

November 17, 2011

Summary

The Big Ideas for Job Creation project reviews suggestions from leading experts who have come up with practical, scalable proposals to create more jobs for the U.S. economy. This brief shows how a current tax credit program (Work Opportunity Tax Credit) is not creating jobs and could be redirected into subsidized job opportunities (Temporary Assistance for Needy Families Emergency Fund). Subsidized job programs have recently shown promise, even if they are not a panacea to the unemployment issues.  The program would be operated by federal and state agencies with state flexibility for design, and could provide low-income parents and youth an opportunity to earn income in a socially valued way, to reconnect with the world of work and learn skills that might lead to future employment.

Table of Contents

Key Takeaway

How effective is The Work Opportunity Tax Credit (WOTC)?

Policymakers have expressed skepticism about the effectiveness of the WOTC for nearly as long as it has existed.

Findings & Stats

Statements & Quotations