Unformatted text preview: ng to the poor.
Attempts to end these federal subsidies have been strenuously opposed by the National Council of Chain Restaurants and its allies in
Congress. The Work Opportunity Tax Credit program was renewed in 1996. It offered as much as $385 million in subsidies the following
year. Fast food restaurants had to employ a worker for only four hundred hours to receive the federal money — and then could get more
money as soon as that worker quit and was replaced. American taxpayers have in effect subsidized the industry’s high turnover rate,
providing company tax breaks for workers who are employed for just a few months and receive no training. The industry front group formed
to defend these government subsidies is called the “Committee for Employment Opportunities.” Its chief lobbyist, Bill Signer, told the
Houston Chronicle there was nothing wrong with the use of federal subsidies to create low-paying, low-skilled, short-term jobs for the poor.
Trying to justify the minimal amount of training given to these workers, Signer said, “They’ve got to crawl befo...
View Full Document
This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08