Article: Khazei suggests tax credit to boost job creation

US Senate candidate Alan Khazei, cofounder of the City Year service program, proposed a tax credit yesterday to encourage hiring by small businesses as part of a six-point plan for job creation.

Billing himself as "the jobs senator," Khazei visited a Boston microfinance agency to pitch a tax credit in which small businesses that hire new employees would be refunded 15 percent of wage costs next year and 10 percent in 2011.

"Small businesses are the unequivocal engine of the US economy," Khazei said in a statement. "They are our innovators, our creators, and our entrepreneurs."

A paper released last month by the nonprofit Economic Policy Institute, a labor-oriented think tank founded by a ...

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