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Treasury Nominee Mnuchin Responds to Question about WOTC

In a comprehensive tax reform effort, everything in the tax code will be scrutinized. That includes the Work Opportunity Tax Credit.

Senators on the Finance Committee had the opportunity to submit written questions to Treasury Secretary nominee Steven Mnuchin to ask questions beyond what was covered in his live hearing. Senator Ben Cardin (D-MD) asked the following question about WOTC:

President Trump has repeatedly indicated that he wants to address poverty and joblessness in America. He has also emphasized the need to help those who have lost their jobs because the company they were working for moved overseas as well as the desire to encourage businesses to relocate back to the U.S.

One of the programs for which the Treasury Department shares responsibility with the Department of Labor is the Work Opportunity Tax Credit (WOTC). WOTC helps over 1.3 million Americans find work in the private sector. Studies by Dr. Peter Cappelli, a Wharton School of Business Labor Economist, indicate that the program more than pays for itself in savings from entitlement programs and that employers using it change their hiring practices to hire those who are eligible.

Will you work with our office to make WOTC a permanent part of the President’s goal of reducing poverty, encouraging comppanies to bring jobs back to the United States, and helping Americans displaced by overseas competition?

Mnuchin responded:

Bringing jobs back to the United States and helping American workers displaced by factories moving overseas are cornerstones of the President’s platform, so I join you in your desire to
encourage businesses to relocate back to the U.S. If confirmed, I will work with you and all stakeholders to ensure that economic incentives are aligned to facilitate job creation and business relocation here in the U.S.

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