We have a responsibility to make sure that our troops can quickly rejoin the civilian workforce after they complete their service. That's why President Obama is putting out a plan to encourage employers to hire veterans. Measures in the American Jobs Act will expand opportunities for unemployed veterans to re-enter the workforce, provide hiring incentives to businesses, and help create new job opportunities for returning servicemembers.
What the American Jobs Act Will Do
- Create new tax credits for veterans: The plan includes a new Returning Heroes Tax Credit of up to $5,600 for business that hire veterans who have been unemployed six months or longer. A Wounded Warriors Tax Credit of up to $9,600 will also increase the existing tax credit for firms that hire veterans with service-connected disabilities who have been unemployed six months or longer.
- Put more money in the pockets of every veteran in the workforce: The President is proposing to extend and expand the payroll tax cut passed last December, allowing families to keep more of what they earn. A household with $38,000 in income would typically pay about $2,350 in Social Security taxes. By expanding the payroll tax cut, that household will pay $1,100 less.
- Create pathways back to work for veterans looking for jobs: The plan offers targeted support to help the longterm unemployed get back to work, including up to $4,000 in tax credits for businesses that hire workers who have been looking for a job for more than six months. It also includes legislation prohibiting employers from discriminating against unemployed workers.
- Help veterans transition to post-service careers: The plan will form a Department of Defense-led task force that will maximize the career-readiness of all servicemembers and enhance job search services through the Department of Labor for transitioning veterans.
Like all of the measures in the American Jobs Act, these initiatives will be fully paid for as part of the President's long-term deficit reduction plan. The President's detailed deficit reduction plan will pay for every penny of the American Jobs Act.