Unemployment Benefits Will Not Be Extended
S. Gardner published a series of informative articles related to the extension of unemployment benefits, read her work here.
The House has voted to extend unemployment benefits; that vote was futile since the Senate was unable to pass the bill. As a result more than 1.3 million Americans that lost their jobs will not have their unemployment benefits extended before the congressional recess.
House and Senate Democrats are trying to push through federally extended unemployment benefits for another three months at the minimum. The plan by the Democrats will add to the deficit and cost approximately 39 billion dollars.
The Republicans are balking and want the benefits to be deficit neutral by paying for it with last year's unspent stimulus money.
Senate Majority Leader Harry Reid stated the measure will be voted on again once there is a replacement named for the late Sen. Byrd. West Virginia Gov. Joe Manchin, a Democrat, will name Byrd's replacement.
An amendment offered by Senator John Thune (R-SD) to the American Jobs and Closing Tax Loopholes Act(H.R. 4213) would have provided a vehicle to extend unemployment benefits as well as other key financial items.
On June 17, The Thune Amendment was defeated 41-57 strictly along Party lines with zero Democrats voting for the measure and only Republicans voting in favor of it. Sixty votes were needed. Two members that did not cast a vote; they were Graham (R-SC) and Klobuchar (D-MN).
Press release: Thune's GOP Tax Extender Alternative is Paid for, Doesn't Add to Debt, Cuts Taxes
The underlying proposal sponsored by Senator Baucus increases spending $126 billion, includes over $70 billion in new taxes, and increases the deficit $79 billion over the next 10 years. The Thune amendment takes the exact opposite approach; it cuts taxes by $26 billion by extending current law; cuts spending by over $100 billion and reduces the deficit by $55 billion, according to CBO.
- The amendment extends the expiring unemployment provisions until November, just like the Baucus proposal and the House-passed bill.
- The amendment extends $32 billion in expired tax provisions that lapsed at the end of 2009 including the tax credit for research and development and the state and local sales tax deduction through the end of the year.
- The amendment drops all the harmful tax increases, and the costly $24 billion state bailout that is not paid for in the Baucus proposal.
- The amendment is fully paid for with spending cuts that have been supported by all Republican Senators.
- The amendment saves the taxpayers $113 billion in unnecessary spending by rescinding $38 billion in unobligated stimulus funds, cutting wasteful and unnecessary government spending, collecting the unpaid taxes of federal employees, freezing their salaries and capping their numbers, imposing a five percent across the board cut in government spending for all agencies except the VA and DOD, and creating a new deficit reduction trust fund where rescinded balances and moneys saved through this amendment will be deposited for the purposes of paying down the federal debt.
- The Thune amendment provides relief for doctors by adding an additional year of the "doc fix" and reforming our broken and onerous medical malpractice system.
As of June, 04, 2010 the unemployment rate hovered at 9.7; will that number increase when the 411,000 workers lose their temporary jobs?
A report by the Washington Independent noted that Congress has never allowed federally extended unemployment benefits to expire with unemployment rates at such a high level and usually extended benefits until the unemployment rate dropped to 7.2 percent or lower.
Sources: embedded in content.
Published by Tony Jingo
An American Patriot with an independent view on today's topics. Jingo (noun) One who vociferously supports one's country View profile
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36 Comments
Post a Commentthey have made arrangements to pay for extending UI benefits..the unspent stimulus money, which would not have added to the debt. The Obama admin rejected the fiscally sound solution and exploited the out of work Americans for political gain. shameful.
Who would pay the costs of not extending unemployment benefits? Who will pay the cost of those unemployed turning to the Welfare Department for financial support? Who will pay for the families applying for food stamps? Who will pay for the new uninsured unemployed visitors to the hospital emergency rooms? If the Republicans truly want a pay-as-you-go policy, then they should also arrange payment for the alternatives to extending unemployment benefits.
Wow! we need more writers like you! I really appreciate this information!
I know someone who was laid off in June of 2007, and collected UC, off and on, until March of this year! I can't believe they won't eventually extend these benefits. The problem is in Pennsy, that they based the unemployment rate only on those actively seeking work. Many people have given up in frustration, and that makes it look like unemployment is not as bad as it really is.
Thanks for the TRUTH. Obama conveniently left out that little detail, eh?
The Republicans are right in supporting extended unemployment benefits paid from last year's unspent stimulus money. Thanks to this administration, the entire economic picture is screwed up. Earlier unemployed have already gotten 2 years of UC benefits; newly unemployed would get only six months. Why? Because "stimulus" was used more to bribe different entities rather than to help ordinary working people and small businesses.
This is a tough topic. It always is when law and tradition are bent to accommodate individuals, but surely it is a noble effort. I don't really know where I come down on this. People need help for sure, but bending law everytime is an excuse for rampant progressive abuse, as we can see today.
There is not equity between states for unemployment benefits, though. Some states pay 30% or less of the last working salary, and others pay 60% or more. People shouldn't starve or go without utilities, but neither should working poor (and future generations) pay for them to not work. I'm self-employed, already paying more in self-emp FICA, etc. than a worker with an employer, and now that my tax money is being used to bail out this "employer insurance" funded program, I am definitely against it. I'm certainly not eligible, ever. It's money down the drain no matter how you look at it, and self-employed and small businesses are carrying more than their share. IF any monies go to this, the Thune plan at least pays for itself.
Self-employed, I'm not eligible for unemployment, but sure was thinking of ways to get all those extended benefits (to no avail). It is amazing though we find a way to make it even without help!
Great report.