OTHER NEWS - Aug. 20, 1994

Job-Creating Tax Credit Faulted: An internal Labor Department report calls for scrapping a $300-million program that falls short of its goal of enticing businesses to hire disadvantaged workers. The audit, prepared by the department’s inspector general’s office, said employers would have hired nearly all the workers for which they received the Targeted Jobs Tax Credit without the program, adding that the cost of the program far exceeds its benefit. Doug Ross, head of the Employment and Training Administration, acknowledged problems with the program but said some of them have been addressed. He added that a more scientific study is needed. A department spokesman said later, however, that the intent was to recommend further study only if the program is renewed.