A New Jobs Tax Credit?

Catherine Rampell of the New York Times reports that their is growing bipartisan report for a new jobs tax credit to spur hiring:

The idea of a tax credit for companies that create new jobs, something the federal government has not tried since the 1970s, is gaining support among economists and Washington officials grappling with the highest unemployment in a generation.

The proposal has some bipartisan appeal among politicians eager both to help their unemployed constituents and to encourage small-business development. Legislators on Capitol Hill and President Obama’s economic team have been quietly researching the policy for several weeks.

“There is a lot of traction for this kind of idea,” said Representative Eric Cantor of Virginia, the Republican whip. “If the White House will take the lead on this, I’m fairly positive it would be welcomed in a bipartisan fashion.”

There has been much talk lately about how the economy is in recovery, yet the unemployment rate continues to grow at an alarming rate. Perhaps it is time Congress took action to directly incentivize employers to hire new employees.