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.

November 17, 2011

In This Report, You’ll Learn

  1. 1

    What criteria must be met to qualify as a Big Idea for Job Creation.

  2. 2

    What the Work Opportunity Tax Credit (WOTC) is and how it is/isn’t working.

  3. 3

    How the WOTC and the Temporary Assistance for Needy Families Emergency Fund (TANF EF) subsidized jobs program compare.

  4. 4

    How businesses actually implement tax credit and job subsidy programs.

  1. 5

    Why WOTC funds should be redirected to job subsidy programs.

  2. 6

    How a combined job subsidy initiative should be implemented at both the federal and state levels.

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