Khazei suggests tax credit to boost job creation

Billing himself as “the jobs senator,’’ Khazei visited a Boston microfinance agency to pitch a tax credit in which small businesses that hire new employees would be refunded 15 percent of wage costs next year and 10 percent in 2011.

“Small businesses are the unequivocal engine of the US economy,’’ Khazei said in a statement. “They are our innovators, our creators, and our entrepreneurs.’’

A paper released last month by the nonprofit Economic Policy Institute, a labor-oriented think tank founded by a group that included former US labor secretary Robert Reich, estimated that such a credit would create 5.1 million jobs over two years. Khazei said that would mean as many as 100,000 new jobs in Massachusetts, where the unemployment rate reached 9.3 percent in September.

Khazei stopped by ACCION USA, a Sullivan Square-based nonprofit that makes small loans to low- and moderate-income entrepreneurs nationwide, to discuss his three goals for job creation: invest in a second federal stimulus act, one with fewer earmarks and aimed at projects with economic, social, and environmental benefits; help innovators, educational institutions, and venture capitalists come together to bring good ideas to market faster; and invest in education and workforce-development programs.

Those goals inspired the six specific points in Khazei’s jobs plan, which include passing his small-business hiring credit; approving climate-change bills to spur investment in clean energy and energy efficiency; and fully funding the Edward M. Kennedy Serve America Act, with the aim of creating up to 250,000 full-time and part-time service jobs.

Yesterday, Khazei also became the fourth in the four-candidate Democratic field to roll out a television ad. The 30-second spot, which his campaign says will air on Boston cable and network television, highlights Khazei’s work to create and develop City Year. “I’ve always believed one person has the power to change things,’’ he says. He also alludes to his decision not to accept campaign contributions from PACs and lobbyists, saying, “Change always comes from the people, not the special interests.’’

In the Dec. 8 primary, Khazei faces Attorney General Martha Coakley, Celtics co-owner Stephen Pagliuca, and US Representative Michael E. Capuano. State Senator Scott Brown of Wrentham is vying with Jack E. Robinson for the GOP nod. The special election is Jan. 19.