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US president signs a bill

19 March 2010 15:21 (UTC +04:00)

Baku â€“ APA-Economics. Companies that hire unemployed workers will get a temporary payroll tax holiday under a bill that easily won congressional approval Wednesday in what Democrats hope is just the first of several election-year measures aimed at boosting hiring.

The 68-29 bipartisan vote in the Senate sent the legislation to the White House, where President Barack Obama was expected to sign it into law Thursday. Eleven Republicans voted for the legislation, an impressive tally considering the politically charged atmosphere on Capitol Hill.

It was the first of several jobs bills promised by Democrats, though there’s plenty of skepticism that the measure will do much to actually create jobs. Optimistic estimates predict the tax break could generate perhaps 250,000 jobs through the end of the year, but that would be just a tiny fraction of the 8.4 million jobs lost since the start of the recession.

The bill contains about $18 billion in tax breaks and a $20 billion infusion of cash into highway and transit programs. Among other things, it exempts businesses that hire people who have been unemployed for at least 60 days from paying the 6.2 percent Social Security payroll tax through December and gives employers an additional $1,000 credit if new workers stay on the job a full year. Taxpayers will have to reimburse Social Security for the lost revenue.