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White House seeks to stimulate jobs

Marketplace Staff Oct 6, 2009
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White House seeks to stimulate jobs

Marketplace Staff Oct 6, 2009
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TEXT OF INTERVIEW

Steve Chiotakis: The slow economic recovery isn’t doing anything for unemployment in this country. The Obama administration is looking for ways to turn that around. Let’s check in with Marketplace Washington Bureau chief John Dimsdale, with us live this morning. Good morning John.

John Dimsdale: Good morning Steve.

Chiotakis: So yeah, why is the White House focusing on ideas to stimulate jobs?

Dimsdale: Well you know the September unemployment report was worse than expected — 9.8 percent is a 26-year high. And in his radio address over the weekend Obama called that a sobering reminder that progress will come in fits and starts.

President Barack Obama: That’s why I’m working closely with my economic team to explore additional options to promote job creation.

Chiotakis: Well John, so what are Mr. Obama’s advisers thinking about doing?

Dimsdale: Well The New York Times reports that the administration might revive the idea of giving businesses a tax credit for every new employee. That was considered at the beginning of this year, but it didn’t fly in Congress because of concern that companies might fool with the numbers — maybe lay off people, then rehire them just to get the $3,000 tax credit.

The White House is also possibly proposing expanding the number of companies that are allowed to deduct more of their operating losses — deducting five years’ worth instead of the normal two. That was a break given to small businesses earlier this year, but now it could be expanded to help out larger companies and maybe stimulate some hiring.

Chiotakis: And what’s happening on Capitol Hill on the jobs front?

Dimsdale: Well the Democrats are considering extending the $8,000 tax credit for first-time homebuyers, which would expire at the end of November. And the extended employee benefits will end in January unless Congress decides to renew them, that’s always popular going into an election year. But it will cost as much as another $100 billion.

Chiotakis: All right, Marketplace’s John Dimsdale joining us from our Washington bureau. John, thanks.

Dimsdale: Thanks Steve.

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