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Reed Proposes Tax Credit, Working To Avoid Gov’t Shutdown

A bipartisan proposal by U.S. Reps. Tom Reed and Joseph Crowley wants to make permanent a tax credit that assists employers who hire individuals on a low-income or ex-felons.

Legislation was introduced Friday by Reed, R-Corning, in an effort to amend Internal Revenue Code by changing the work opportunity tax credit, which is currently temporary, to a permanent basis. Reed said the tax credit expires in 2019.

Tax credits can be provided to employers who hire individuals who are on a low-income and face barriers when it comes to obtaining a job. The tax credit also applies to employers hiring people who’ve had run-ins with the law, 16- and 17-year-olds who can work between May 1 and Sept. 15, and unemployed veterans.

“The tax credit provides relief to get those individuals back into the workforce,” Reed said during a Tuesday conference call. “The policy has been around since 1986 and it’s good to make the private sector a partner of public investment.”

The bill currently sits in the House Committee on Ways and Means. Reed said he’s hopeful that the tax credit will be enacted on a permanent basis. Crowley, D-N.Y., is cosponsoring the bill.

Reed also discussed the work the Problem Solvers Caucus is doing related to a looming government shutdown. Earlier in the year, Congress passed a federal spending package to keep the government running through the end of September.

Reed said the caucus is working to reach a position to make a formal decision on what members would support. The caucus is made up of more than 30 Republicans and Democrats in the House.

“We started this process about two months ago and it’s starting to heat up now over the break in regards to the district work period,” Reed said. “We’re going to continue the exchanges. I believe it’s one of the first items we take up when we return for our Problem Solvers Caucus meeting (in September).”

Reed said he’s hoping budget discussions will stay away from ideological warfare situations where lawmakers take on issues that aren’t related to the budget. Reed said discussions should stick to matters like the debt ceiling and budget cap agreements to keep the government open.

“I think the more you can avoid ideological warfare in this debate the stronger you have to deal with the issue at hand, and that’s all fiscally-, monetary- and budgetary- related matters,” he said.

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