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Unemployment Benefits Expire; What Will Congress Do?
November 29, 2010 - by Donny Shaw
Federal unemployment insurance, which provides a lifeline for millions of long-term unemployed workers, expires today, and from here on out it’s going to be harder than ever for the Democrats in Congress to pass another extension.
The Republicans have officially begun chipping away at the Democrats’ majority in the Senate. Republican Mark Kirk was sworn in Monday, taking over for Democrat Roland Burris as the junior Senator from Illinois and knocking the Democrats’ Senate majority down to 58. Kirk has made his opposition to the Democrats’ plans for extending unemployment benefits clear, saying on Fox recently that he would vote against any extension that is not offset by new revenue.
The last time the Democrats tried to pass an unemployment extension, with Sen. Ben Nelson [D, NE] defecting, it took them six weeks to find the two votes they needed to get to 60. Assuming Nelson is still a “no,” now they will have to find three votes now to get 60 votes and break a filibuster. Not likely to happen given the time constraints.
So the Democrats have basically two options for getting this done. Either they find an offset — some kind of targeted tax increase or spending cut — or they tie this together with something the Republicans really want and force them to accept the unemployment extension along with it. Right now, the latter approach is looking most likely, with Democratic leaders already discussing a “grab bag” of compromise ideas to tie in with a vote on extending all of the 2001 Bush tax cuts.
From the perspective of the unemployed, the advantage of this approach is that the Democrats would actually have some bargaining power and could ask for a longer extension. A couple weeks ago when House Dems tried a stand-alone unemployment extension bill, they were trying for only three months. Today, Sen. Max Baucus [D, MT] introduced a bill to extend benefits for all of 2011, and that seems to be an emerging Democratic consensus given the Fed’s recent projections that the unemployment rate will stay pretty much where it’s at now for all of 2011. Combined with an extension of the Bush tax cuts, the Democrats could go for a longer extension, or even try for adding more weeks for unemployed workers who have exhausted all their available benefits. There operable word here, of course, is “could.” There’s really no way to know at this point beyond pure speculation what they will actually do.
Of course, the grand irony in all this would be that the Republicans, who have positioned themselves against the unemployment benefits because they are not paid for, would end up accepting them because they so badly want to extend the Bush tax cuts, which are also not paid for. The result of all the compromising would be a massive deficit enhancing package, which is something both sides say they don’t want, but which neither are willing to oppose if they get a bit of something they really want in it. That said, the Congressional Budget Office has determined that unemployment insurance is about five times more effective at increasing overall economic output than reducing income taxes in 2011 (e.g. a la an extension of the Bush tax cuts).

Blog - Unemployment Benefits Expire; What Will Congress Do?




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Displaying 31-43 of 43 total comments.
We are all in the same situation and for those of you who aren’t – hopefully, you never will be BUT I have to say – where were you all on election day??? Lots of blogs spoke about how we needed to keep the democrats in office – how they are literally our life line – yet, the republicans claimed victory in so many elections – sickening. And we have only ourselves to blame.
The Bush era tax cuts have increased overseas investments and outsourced our jobs to the developing nations of China and India without forethought (or any regard) for the Americans that would be displaced. Extending the tax cuts, the war effort and other fruitless government expenses further degrade our society. Are we in a race to be the poorest nation? Are we headed back to the days of feudalism? Our forefathers are appalled at the greed of the elites at the expense of their great experimental society.
Of the thousands of resumes I have sent out, I have had a 5% hit on mostly because I believe that employers do not want to hire the best and brightest to increase their business, they just want to hire the cheapest candidate because they are only thinking of the current bottom line and not the increase in business they would be receiving by hiring from a more intelligent, experienced candidate pool.
Our deficit will never come down with this current mindset!
anyone that expected this bill to pass unpaid for with a unanimous consent vote is an idiot. this was all just a show meant for news paper headlines. It was a waste of time they are simply playing games.
Amen!!!
I cant belive that all the rep. care about is keeping there pockets lined, Screw the people i guess
The onslaught of Bankruptcies and Bad Debt will be more than the banks can handle. I have tried for 18 months, sent out well over 1000 resumes and I have had 6 interviews and no offers in all that time, I have a great job record, I am 48 years old, I was laid off after 10 years on my last job.
Simple as this…. DEMOCRAT OR REPUBLICAN what does that have to do with having a heart? While they are at home cozy and warm with food in the fridge( probably take out) along with a nice great big christmas tree and tons of gifts; Most unemployed people are without. I have been applying for jobs already going on 5 months. Im still unemployed with no typeof income at all! I am willing to except an $8.00 an hr job and cannot even get one… Im starting to think USA= Unemployed Sorry @$$es… sorry just venting!
“Brown delivered the speech as he attempted a compromise on extending unemployment benefits that expire tomorrow. His compromise involved using unobligated federal funds to pay for the cost of extending the benefits
“Are we going to do it from the bank account, or are we going to put it on the credit card?” he added. "I know what I want to do. I’ll use the bank account. Let’s use money that’s already in the system and put it to good use immediately, by 12 o’clock tonight. Let’s do it!”
Under Senate rules, Brown’s proposal would have needed unanimous approval, but it failed because one senator – Jack Reed, a Democrat from Rhode Island – objected."
http://www.boston.com/news/politics/politicalintelligence/2010/11/brown_gives_fei.html
so why do all of the headline read “unemployment extension blocked by republicans”?
My suggestion is that if they can not get an extension passed, then pass a discount or complete eliminated taxes on unemployment. This would help the unemployed out alot with out spending. If you had taxes taken out of unemployment you would get back more money, if you didn’t you would not have to pay taxes on it, last year they had a measley discount of the first 2400 was not taxable, this year they need to up that or not tax it all. That is stimulas money back into the economy for most of us.
Won’t do me and many others any good! I am out of benefits.
“people still losing their homes even though banks were given money to loan to help people keep their homes”
Look up Shared Loss Agreements—- the Government actually made it more profitable to the bank to foreclose on the property than to modify loan agreements or do short sales.
Thanks for serving our country.
It isn’t the fault of the unemployed that jobs are not available. Yet Republicans declare the unemployed are not only lazy but insurance benefits prevent them from looking for a job. Fact is, if the Republicans were doing their jobs, instead of fighting with the Democrats; Republicans would get on the band-wagon to secure jobs for Americans. Why don’t the Republicans do just that. Because they know there are no jobs. It’s easier to blame someone else; point the finger and someone else; accuse someone else and name call someone else. Republicans know full well the economy will remain in the pit throughout 2011. It’s so much easier to finger point than to take the blame where the blame belongs. Repblicans protect their own: business owners, high-rollers, the rich, and the richer. To heck with poor people. To heck with the unemployed. To heck with the underemployed. To heck with Democrats.