Abstract:
This case describes the 1994 debate over whether to extend the Targeted Jobs Tax Credit, a provision of the U.S. tax code designed to provide an incentive for employers to hire "disadvantaged" workers. It invites discussion of both the issue itself--specifically, whether the credit, as it was structured, actually fulfilled its purpose and, if not, how it might be adjusted--and the politics of potentially extending the about-to-expire law. The case, written by one who faced the issue himself--former Clinton Administration assistant Secretary of Labor John Donahue, culminates as the Republican Party gains control of Congress in 1994, providing dramatic focus for the discussion.
