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Businesses Use New Tax Break to Hire 4.5 Million: US

Unemployment line
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Unemployment line

The Treasury Department says businesses have added 4.5 million workers under a new program that provides tax breaks for hiring unemployed workers.

The bill passed in March exempts businesses that hire people who have been unemployed for at least 60 days from paying the 6.2 percent Social Security payroll tax through December. Employers get an additional $1,000 credit if new workers stay on the job a full year.

The Treasury Department released a report Monday estimating that from February to May, businesses added 4.5 million workers who qualify for the tax breaks. Those businesses are projected to save $8.5 billion in taxes.

The report, however, does not estimate how many of those jobs would have been added without the tax break.