Cantor: GOP unlikely to back jobs tax credit

Republicans are unlikely to endorse a tax credit for businesses that create jobs, the second-ranking House Republican said Wednesday.

House GOP Whip Eric Cantor (Va.) said he was fairly certain a GOP working group on the economy would not include such a tax break in its recommendations.

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“We don’t think that’s the right way to go about putting small business back into the game of investing and creating jobs,” said Cantor, who will meet with the GOP group on Thursday.

The talk on the tax credit has centered on the idea of providing money to businesses based on their hires. During the 2008 campaign, President Barack Obama proposed a tax credit of $3,000 for each new job created by a business.

Following the weekly House GOP closed-door policy meeting, Cantor said such provisions “are fraught with peril” due to the “potential for abuse.”

Cantor last week was quoted in The New York Times as saying such an idea could be welcomed by both parties and that there is “a lot of traction for this kind of idea.” He later told The Hill he was mischaracterized and did not support the specific $3,000 tax credit.