Departments Editorial CUTTING TOOLS
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 Let's give tax breaks for workforce training by Rep
I am introducing The Skilled Workforce Enhancement Act, a bill to return power and resources back to the hands of employers so they can train their workers. Currently, because taxes are so high, many small businesses simply can't afford to adequately train their employees. This problem has become particularly troublesome for certain highly skilled mechanical trades, such as precision mechanists, diemakers, moldmakers, as well as tool-and-die designers. In fact, the precision-machining industry is so heavily taxed that it is becoming cost-prohibitive for employers to train new workers in this field. As a result, the industry is rapidly aging (the average age of a precision machinist is 55). Within 10 years, there will be a dramatic shortage of skilled workers in these mechanical trades. Although the Department of Labor estimates that the need for these skilled trades is 2% annually of the current work-force, the annual needs to climb to 5% when the aging factor is taken into account. If Congress fails to provide relief soon, this crucial America industry will no longer be able to compete with overseas businesses. To alleviate the impending crisis, The Skilled Workforce Enhancement Act would allow an employer who trains employees in these skills to receive a tax credit to equal 50% of the training expenses, up to a $100,000 credit. In exchange for this credit, the employer must agree to provide 8000 hours of shop training, as well as classroom training, necessary to produce a skilled employee, and retain the employee for one year following the completion of training. The credit would be allowed in 20% increments beginning in the sixth year of the program and would be allowable through the tenth year. This legislation provides much-needed tax relief for many struggling small businesses. It also would shift the responsibility of training employees away from the bureaucracy and back to the private sector. Finally, the bill would provide a crucial incentive to train workers in our own country instead of looking overseas to hire skilled people. This, in turn, will enhance the creation of high-paying jobs, which will stimulate the economy and broaden the base of taxpayers. Rep Talent is a member of the Education and the Work Force Committee and the Employer-Employee Relations subcommittee. Rep Talent's remarks are adapted from a letter written to his colleagues. http://www.house.gov/talent
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For too long,
we have relied on inefficient, big-government programs to keep America's work-force well
trained. At the same time, the federal government has suffocated small business with
burdensome levels of taxation and excessive regulation. This tax-and-spend approach has
failed, and it's time for Congress to look for new and more effective ways to train
American workers.
