VOW to Hire a Hero Tax Credit Rewards Employers for Firing a Hero

VOW to Hire a Hero Tax Credit Rewards Employers for Firing a Hero

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Read Joe Kristan’s Hire a Vet, Fire Someone Else for yet another reason to distrust government. In it he tells of a new law, the VOW to Hire Heroes Act, which gives a tax credit to employers who hire veterans.

A very nice gesture, don’t you think?

Not so fast Kowalski. The geniuses on Capitol Hill failed to include a provision in the bill requiring employers to actually increase the number of their employees as a result of the hiring.

The Tax Policy Blog explains the problem:

Legislators failed to include a provision saying that business must increase net employment in order to receive the credit. Given the lack of such a provision, a business could hire a veteran and fire one on the same day, eventually collect a government check of up to $9,600, and not reduce veteran unemployment by a single job.

Here’s Joe:

So the government will pay employers to fire existing workers, including veterans, and replace them with other veterans. Well done. It’s another example of how you shouldn’t look to the tax law to solve every problem.

It’s always fun to mock bureaucrats, but I have to assume that even they will have the good sense to fix this.

About Peter Pappas

Peter is a tax attorney and certified public acccountant with over 20 years experience helping taxpayers resolve their IRS and state tax problems.

He has represented thousands of taxpayers who have been experiencing difficulty dealing with the Internal Revenue Service or State tax officials.

He is a member of the American Association of Attorney-Certified Public Accountants, the Florida Bar Association and The Florida Institute of Certified Public Accountants and is admitted to practice before the United States Tax Court, the United States Supreme Court, U.S. District Courts - Middle District of Florida