Investing in American Workers Act
Summary
The "Investing in American Workers Act" introduces a tax credit for employers who provide worker training. This credit aims to incentivize businesses to invest in the skills development of their non-highly compensated employees. The credit is equal to 20% of the excess of qualified training expenditures over the average of adjusted qualified training expenditures for the prior three years.
Expected Effects
The Act will likely increase employer-sponsored training programs, particularly for smaller businesses and tax-exempt organizations. This could lead to a more skilled workforce and increased job opportunities for non-highly compensated employees. The Act also includes provisions for simplified filing for small businesses and regulations regarding postsecondary credentials.
Potential Benefits
- Incentivizes employers to invest in worker training, leading to a more skilled workforce.
- Provides a tax credit, reducing the financial burden on businesses that offer training programs.
- Targets non-highly compensated employees, potentially improving their career prospects and wages.
- Includes provisions for simplified filing for small businesses, reducing administrative burdens.
- Encourages training programs that lead to recognized postsecondary credentials, enhancing the value of the training.
Potential Disadvantages
- The credit is based on the excess over a three-year average, which may not benefit new businesses or those with consistently low training expenditures.
- The definition of "qualified training" is specific, potentially excluding some valuable training programs.
- The complexity of the tax code and the need for regulations could create compliance challenges for businesses.
- The focus on non-highly compensated employees may lead to a disparity in training opportunities within organizations.
- The cost-of-living adjustment calculation could be complex for businesses to implement.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble). By promoting worker training and skill development, the bill aims to enhance the economic well-being of individuals and the nation as a whole. The bill falls under the powers granted to Congress in Article I, Section 8, which allows Congress to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).