Walz touts tax incentive bill at Viracon on Owatonna

Congressman Tim Walz discusses a new bill aimed at helping recently discharged veterans re-enter the workforce Saturday at Viracon. The bill, called H.R. 5400, was introduced in May.

By CLARE KENNEDY

ckennedy@owatonna.com

OWATONNA — Many are feeling the sting of low employment rates, but one group in particular is taking the brunt of the recession — the nation’s returning servicemen and women. The trend is especially acute among male veterans aged 18 to 24, 21.6 of whom were unemployed, according to a report by the Bureau of Labor Statistics released in 2010.

One such person is Lowell Honsey, a former Navy man who has been out of work since he left the service in February of 2008. Honsey has only been able to find a smattering of assignments through temporary agencies, but no full-time work. In the meantime, he’s done “a lot of fishing,” he said, waiting for his ship to come in.

By comparison, the national unemployment rate was 9.5 percent in June. In civilian men of that same age group, the unemployment rate was about 19 percent. This, Congressman Tim Walz said, is a “shame on this country.”

However, on Saturday the Democratic congressman promised a partial solution for Honsey and others in the same boat: A bill moving through Congress — H.R. 5400 — which would amend the Internal Revenue Code of 1986 to extend the “work opportunity tax credit” to recently discharged veterans.

Currently, the federal government only offers tax credits to employers who hire economically disadvantaged veterans — those who are using food stamps or are collecting unemployment benefits. However, many veterans do not file for unemployment after leaving the armed forces, though each is entitled to do so. Therefore, Walz said, many of them miss out on a program that could offer a major selling point to potential employers.

If Walz’s legislation passes, the tax credit system would be extended to all veterans who have left the service in the last five years, whether they have filed for unemployment or not.

“We’re talking about things we can do to incentivize companies that can hire veterans. One, it’s the right thing to do, but two is we know the skills of these workers having served in a disciplined environment,” Walz said. “These are great assets to our country, but they’re falling through the cracks.”

The bill was a joint effort by Walz and John Boozman, a Republican Congressman from Arkansas. Walz outlined the bill in a brief appearance at Viracon on Saturday. The upshot is that the system will be simpler and easier to use, he said. Veterans face higher unemployment rates for many reasons — they are behind their peer group in terms of education and civilian work experience and many employers don’t know how to use the skills they acquired in the military. Many employers don’t know exactly what an infantryman does, Walz said, which denies them opportunity unnecessarily.

“I think that’s all any of us ask for. You don’t have a right to be successful in this country, but we want to give you a right to opportunity,” Walz said. “It will make it easier for these folks when they get out.”

The bill is currently in committee and its future is as yet uncertain. If the Walz bill does not pass, the existing tax incentive program will expire in August 2011.

“We’re going to try and make it permanent,” Walz said. “This is really needed.”

Walz’s Republican opponent Randy Demmer liked the idea, but criticized Walz and his party on the grounds that their other policies hamper business. Demmer is currently a representative in the Minnesota House, and he faces Walz in the upcoming November election.

“I support any employer hiring people, but if you say that ‘I support (this bill)’ then why do you do these other things that are so hurtful?” Demmer said, giving increases in taxes and regulation as an example. “He has an abysmal record with the U.S. Chamber of Commerce.”

In response, Walz was somewhat defiant.

“He and I will have that discussion. The tax burden is actually lower than it’s been in 75 years for individuals,” Walz said. “We’ll also have that discussion about the policies of the previous administration leading us into this mess. The fact of the matter is that we’ve returned about $7 trillion in wealth via economic stabilization.”

Walz added that Demmer could have enacted a similar plan on a smaller scale in Minnesota, but did not do so.

“He didn’t, so we’re going to do it now,” Walz said.

Clare Kennedy can be reached at 444-2376.

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Member Opinions: By: BB5960 on 7/18/10 This guy should be voted out. He voted for Obamacare, that's catastrophic enough! Typical Democrat blaming Bush for everything. Bush was bad, but Obama's worse. By: RealityCheck on 7/19/10 Hey BB, The abuses the Bush administration put on all of us took 8 years to unravel. It will take more than 8 more to fix it all so you don't get to blame Obama for any of it. You get to blame anyone who voted for Bush both times. If that includes yourself, then take a long hard look in the mirror and accept the fact that the problems are hard to fix because Bush did so much damage. It could take decades to fix the damage. You don't get to blame Obama yet. Bushites were still blaming Clinton 6 years into Bush's reign (which was B.S. too) so if you're a Bush fan you have to give Obama a pass for 4 more years unless you wanna call yourself a.... HYPOCRITE. By: Holidayguy on 7/19/10 RC--yes true all thru Bushes reign the rethuglicans blamed clinton for everything,and what was funny was they never thanked him for the great awesome best this nation has ever seen economy. The very economy Bush trashed right away. But thats what rethuglicans do they trash economies kill the middleclass and love love love wars and takeing away peoples freedoms. By: Drew on 7/19/10 Bush must have taken away other freedoms from Holidayguy as well, most apparent are the freedoms of spelling and grammar. By: BB5960 on 7/19/10 Umm...guys I don't like Bush. I don't like Obama either. But, of the two I believe Obama is worse. The Repubs and Dems haven't done crap. I'm not registered with either. So settle down. By: TheMole on 7/19/10 I'm with you BB... By: NotAMoron on 7/19/10 Alright BB, Obama has not been in office for 8 years yet. Even for everyone to judge Bush so soon is stupid. So judging Obama is even stupider, a new level of stupid. Do you want to be on that level? No. No you don't. By: freedomnotfree on 7/19/10 What we have right now is not a government working for the people. I dont care who you are and whether you belong to a party or not, you better start thinking about your future. Start voting, following politics, know what your government is doing and what they are about.Research your candidate before you cast your vote. If you dont pay attention to who and why you are voting,why vote?? And if you are someone ranting on and on about what you think is wrong or right....did you vote? If not...should you be ranting?? Pay attenetion to what is happening in this world and in our own country. It is not good. For the record on the article... These men and women went and did a job some of us are too lazy and chicken to do. Your freedom rests on the shoulders of these brave people and the ones who fought before them. Grow up!! Freedom is not free!!! By: BB5960 on 7/20/10 Freedomnofree- you're right on! By: Sarge on 7/20/10 Freedomnotfree, Well said!! Both sides are fighting and acting like children. I think they just care about the party they are in and not about the people they should be answering to. My 2 cents. By: TheMole on 7/20/10 Sarge-I have said that all along, who cares about the people, what can I do for me or my party. By: NewPoster on 7/20/10 Party Lines, party lines, party lines. This is typical of many voters in America. My granpa voted Democrat/Republican, my daddy voted Democrat/Republican, therefore I will vote Democrat/Republican. Don't confuse me with facts or things the candidate has done right or wrong. That is the way I am voting period! I don't need to know anything about the candidate.
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