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C.4. Tax Credit – A long-standing proposal to extend employment is to make use of the tax system to present firms incentives to rent extra workers (Spence and Hlatshwayo 2011). For instance, Alan Blinder, former vice-chairman of the Federal Reserve, has proposed giving firms a tax credit equal to ten % of the increase in their wage payments over the earlier year (Blinder 2013). Other experts have proposed using tax policy to learn younger people who may be disproportionately affected by technological unemployment (Sachs and Kotlikoff 2012).
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