Introduced Legislation: "Hire Now Tax Cut Act of 2010"

On February 3, Senator Chuck Schumer (D-NY) and Orrin Hatch (R-UT) introduced the “Hire Now Tax Cut Act of 2010” to help stimulate the hiring of workers by the private sector. It would exempt employers that hire a worker who has been unemployed for at least 60 days from having to pay the employer's 6.2% of the Social Security payroll tax on that employee for the remainder of 2010. What's more, if the new hire is on payroll continuously for at least 52 weeks, and his pay for the second 26-week period is at least 80% of what it was in the first 26-week period, then the employer could claim a $1,000 credit for hiring the employee. Workers hired after the date of introduction would be eligible for the payroll tax forgiveness and the retention bonus, but only wages paid after the enactment date would receive the exemption from payroll taxes.
A press release issued by Schumer and Hatch stressed that their measure would be simple to explain and administer, and give businesses an immediate incentive for hiring workers right away.
An employer couldn't claim the new tax breaks for hiring family members, or for replacing another worker who performed the same job for the employer (unless the prior employee left voluntarily or for cause). The bill would bar employers from claiming the new tax breaks as well as the Work Opportunity Tax Credit for the same new hire.