Pay for Play? Tax Credits for Paid Time Off

Baker, Dean

Pay for Play? Tax Credits for Paid Time Off

CEPR Reports and Issue Briefs from Center for Economic and Policy Research (CEPR)

Abstract: Economists are increasingly coming to the recognition that the current downturn is likely to be longer and more severe than they had expected at the time the last stimulus package was approved in February. As a result, there is likely to be interest in additional stimulus in order to boost the economy and lower the unemployment rate. This paper briefly outlines a method for Congress to quickly boost demand in the economy, while at the same time promoting important public ends: an employer tax credit for paid time off. This paid time off can take the form of paid family leave, paid sick days, paid vacation, or a shorter workweek. This tax credit can both provide short-term stimulus and also provide an incentive to restructure workplaces in ways that are more family friendly. It is possible that many workplaces may leave in place changes made to take advantage of this tax credit even after it has expired.

Keywords: economic stimulus; fiscal stimulus; ARRA; recession; paid time off (search for similar items in EconPapers)
JEL-codes: E E2 E24 E6 E62 E64 H H2 H25 H3 I I1 I18 J J2 J22 J23 J3 J38 J6 J68 (search for similar items in EconPapers)
Pages: 3 pages
Date: 2009-03
New Economics Papers: this item is included in nep-lab, nep-pbe, nep-pke and nep-pub
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:epo:papers:2009-13

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