Inside the Senate

This week, the Senate will take up the House-passed bill to repeal the 3% withholding requirement for government contractors. The bill passed in the House 405-16 (the 16 detractors were all Democrats). A separate, paid-for, bill was passed by a narrower margin (262-157) and would scale back Obamacare’s expansion of Medicaid.

In a rare showing of bipartisanship, the White House supports the repeal bill, which was part of the President’s jobs bill, and the paid-for, although it is unclear whether Senate Democrats will vote for the “paid-for” bill, seeing as how it doesn’t raise taxes.

Senate Democrats might also attach a bill that would give employers a $5,600 tax credit for hiring veterans who have been unemployed for more than 6 months and a $9,600 tax credit for hiring long-term unemployed disabled veterans.

Due to the regulatory hurdles that businesses are facing, it seems unlikely a relatively small tax credit will persuade employers to create new jobs so they can hire veterans. If it costs $80,000 to hire a new person, $5,600 off won’t be much of an incentive. It will most likely only provide a benefit for those businesses already intent on hiring a veteran.

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