WOTC is popular across the aisle thanks to its many attractive benefits
The Work Opportunity Tax Credit (WOTC) is a federal tax credit program designed to encourage businesses to hire individuals facing significant barriers to employment. These include veterans, ex-felons, recipients of certain government assistance programs, and more.
Although finding common ground can be a rare and challenging feat in Washington, the WOTC has enjoyed bipartisan support for over two decades. In this blog, we’ll describe five reasons why.
1. Job creation and economic growth
WOTC incentivizes businesses to hire from demographics underrepresented in the US workforce. For this reason, WOTC stimulates job creation and bolsters local economies–two outcomes that both political parties can get behind.
2. Support for veterans
Hiring from any WOTC target group earns employers tax credits, but WOTC especially rewards businesses who hire qualified veterans. Consequently, WOTC helps veterans transition into civilian life by creating job pathways.
3. Reducing reliance on public assistance
Both Republicans and Democrats recognize the importance of creating career paths for Americans who receive government assistance. Because WOTC rewards businesses who hire and retain these individuals, both sides of the aisle support the program.
4. Workforce diversity
Employers who screen for WOTC tend to hire more diverse workforces. As both Republicans and Democrats represent a wide variety of electorates, WOTC’s wide net is universally popular.
5. Positive budget impact
WOTC has demonstrated a positive return on investment for the government. It both increases tax revenue from employed individuals and decreases reliance on public assistance programs, which helps the federal government despite the cost of issuing tax credits.
WOTC is stable and popular in DC
The Work Opportunity Tax Credit (WOTC) is a testament to the potential for bipartisan cooperation in achieving shared goals. It has promoted job creation, supported veterans, reduced dependency on public assistance, and fostered diversity in the workforce for over two decades. Its broad support among both Republicans and Democrats underscores its significance as a practical and effective policy tool that projects to continue for the foreseeable future.