The Los Angeles City Council directed its attorneys today to draft an ordinance that would give businesses a tax credit for hiring employees who live in the city.
The proposed ordinance would give businesses a $1,000 to $5,000 tax credit against the city's business tax for every resident they hire.
The proposed ordinance would remain in effect until the city's unemployment rate -- now at 13 percent -- is cut to pre-recession levels.
"The unemployment rate in Los Angeles is still higher than the national average, and unfortunately, legislation for a new jobs tax credit at the federal level has not been passed." That from City Council President Eric Garcetti, who called for the proposed ordinance. "As a result it is important," he said, "to move ahead and use our local authority over our own business tax system to make recommendations that will provide tax relief to both our existing businesses as well as new businesses with the specific intent of encouraging job creation."