OpenCongress Blog

Blog Feed Comments Feed More RSS Feeds

60 More Days of the Same

December 23, 2011 - by Donny Shaw

So, House Republicans have completed their cave in and agreed unanimously to the Senate’s two month extension of the payroll tax holiday, unemployment insurance, and other policies that were scheduled to expire on December 31st. There’s a lot of buzz about how this is good for Obama on the political level, but let’s be clear — all this agreement does is extend the status quo. Nothing in this bill would provide new stimulus to boost the economy or create jobs. And it will only last for 60 days, after which point the payroll tax holiday and extended unemployment insurance benefits are at serious risk of being reduced.

As Ezra Klein explained in this mornings Wonkbook, it all depends on what the two parties take away from today’s GOP concession. If the Republicans make a decision after losing this fight that it’s not worth waging it again, then the negotiations over the next 60 days could be much smoother than what we just went through. But if their take away is that they could have won if House Speaker Rep. John Boehner [R, OH-8] and Senate Minority Leader Sen. Mitch McCon nell [R, KY] had been on the same page, then they may dig in deeper and be more confident about standing their ground.

If the Republicans dig in, extended unemployment insurance benefits will be especially at risk in the next deal. Just a few weeks ago, the Republicans had been pushing for a major reduction in extended benefits from the current maximum benefit period for the long-term unemployed of 99 weeks to 59 weeks. In the temporary deal agreed to today, the maximum benefit period will be reduced from 99 weeks to 79 weeks in several states, including some like Michigan and Rhode Island that have especially high unemployment rates. Unemployment benefits are among the most stimulative form of government spending because the money is directed towards people who are very likely to spend it quickly, so cutting unemployment benefits could have a serious drag on demand for goods and services. And there is still only 1 job opening for every 4 unemployed people looking for work (and it’s actually worse than that because of the millions of underemployed workers that are fighting for the same job), so keeping the safety net unemployment benefits provide in tact is still just the right thing to do.

So just because there’s a deal in place for now, the current stimulus policies that are supporting the slight economic growth we’re seeing now are still very much at risk of being cut. Today’s deal is about punting the fight until after recess and trying to avoid the optics of raising taxes and slashing unemployment around the holidays.

Like this post? Stay in touch by following us on Twitter, joining us on Facebook, or by Subscribing with RSS.
payroll taxes unemployment insurance Unemployment Insurance
 

Comments

Displaying 1-30 of 46 total comments.

  • fidlerten 12/23/2011 10:04pm
    Link Reply
    + 0
    ↓

    Donny,
    I have more of an optimistic view myself. Mr Boehner had to eat some crow yesterday and try to paint a picture that he got what he wanted, but anyone with any sense could well see that he lost this battle royally. On top of that, Obama gave the Tea Party faction a big black eye.

    I believe that this next year is going to be a very pivotal year, with the economy starting to turn around and jobs beginning to be created, in spite of all the walls the Republicans have created and will create to stop that from happening.

    Yes of course, there’s going to be some more battles in Congress with the Tea Party trying to keep a foothold and a stranglehold on our congress and our government, but I don’t think they’ll win.

    I also believe that Obama will meet the task of reelection and this country is going to prosper as it never has before. That might be a little too optimistic but that’s what we all need right now isn’t it? A little confidence will go a long way.

  • Spam Comment

  • Comm_reply
    Kencan 04/17/2012 4:49pm
    Link Reply
    + 0
    ↓

    Really i am impressed from this post. The person who created this post is a genius and knows how to keep the readers connected. pepe izle kral oyun friv ben 10 oyunları araba oyunları

  • coachoutletus 12/25/2011 4:56am
    Link Reply
    + 0
    ↓

    mulberry outlet mulberry outlet burberry outlet burberry outlet burberry sale burberry sale burberry outlet online

    mulberry outlet mulberry outlet mulberry sale mulberry sale mulberry bags mulberry bags

  • Comm_reply
    meme20 01/13/2012 12:59am
    Link Reply
    + 0
    ↓

    Kashmir anniversary bales action you host of agitative activities in this accurate site. Trekking, rafting, horse riding, skiing are some of the fun activities provided by Kashmir tourism.
    . wholesale mlb jerseys ，
    mlb jersey cheap for sale ，
    MLB Jerseys factory，
    nba jersey，
    nfl jerseys wholesale

  • Comm_reply
    tammigr21 02/06/2012 5:17pm
    Link Reply
    + 0
    ↓

    I really have enjoyed this great and fun information so much. This was really a great treat to say the least. cooker repairs

  • Comm_reply
    kirsten25v 02/08/2012 2:24pm
    Link Reply
    + 0
    ↓

    I have really enjoyed this great and fun information. This was really great and fun for me to read. I have enjoyed this information so much. how to claim back payment protectionx

  • Comm_reply
    alexa40t 02/10/2012 5:30pm
    Link Reply
    + 0
    ↓

    This was really a fun and interesting article for me to read. I really do appreciate all of this great and fun information. Thanks – Lease Cars

  • Comm_reply
    chelsea25y 02/18/2012 4:12pm
    Link Reply
    + 0
    ↓

    I really do think that this was a great and fun article to read. I have enjoyed this information so much. Thanks – What is neuropathy

  • Spam Comment

  • Comm_reply
    CondoforRentBangkok 02/11/2012 6:30am
    Link Reply
    + 0
    ↓

    Thank you for this article. I have learned alot from it. Condo for Rent Bangkok

  • Spam Comment

  • Spam Comment

  • jamesjohn 12/25/2011 11:41pm
    Link Reply
    + 0
    ↓

    Some States have also enacted a voluntary program to pay up to 7 additional weeks (20 weeks maximum) of Extended Benefits during periods of extremely high unemployment. Since June 2008, when Congress first created the Emergency Unemployment Compensation program, nearly 18 million Americans have at some point received federally funded extended unemployment benefits.

    web design outsource
    flash website design
    web application development

  • Comm_reply
    byanonymous 02/07/2012 5:27am
    Link Reply
    + 0
    ↓

    Until now, it has not been possible to e-mail all of your members of Congress at the same time from one open-source, not for profit, website—unbelievable right?

    advertising design | web design | blog theme design | e card design | email template design

  • Spam Comment

  • aniksaha31 12/26/2011 1:39pm
    Link Reply
    + 0
    ↓

    I believe that this next year is going to be a very pivotal year, with the economy starting to turn around and jobs beginning to be created, in spite of all the walls the Republicans have created and will create to stop that from happening.but we need to celebrate the coming brand new year 2012.
    we can get a huge collection of necklace in this link
    Anniversary Gifts

  • sounders 12/26/2011 4:46pm
    Link Reply
    + 1
    ↓

    Anyways, happy new year in advance! Regards from our Online Marketing Agentur

  • catherine31u 12/28/2011 2:23am
    Link Reply
    + 0
    ↓

    This was really a very cool and fun article for me to read. I really do appreciate this so much. Thanks – Aurora plumber

  • Comm_reply
    laurie29p 02/13/2012 4:08pm
    Link Reply
    + 0
    ↓

    I have really enjoyed reading all of this very cool and valuable information so much. This was great to read. iPad Accessories

  • angela33i 12/31/2011 9:47am
    Link Reply
    + 0
    ↓

    This was an excellent article. I have found this to be very educational and fun to read. I really have enjoyed this information so much. This was really cool. Stack and tilt

  • sayimcrisp 01/01/2012 3:53am
    Link Reply
    + 0
    ↓

    happy new years to all from mumblur (http://mumblur.com)

  • sayimcrisp 01/01/2012 3:54am
    Link Reply
    + 0
    ↓

    happy new years to all from mumblur

  • issygrl29t 01/11/2012 11:01am
    Link Reply
    + 0
    ↓

    This was a great and helpful article to read. I really do think that this was really very cool and awesome to read. Thanks – Quickbooks hosting

  • alissacordry 01/13/2012 1:53am
    Link Reply
    + 0
    ↓
    Thanks your Post! Cheap Authentic Jordans It is a famous brand which provides huge diversity of boots. Nike has brought out a most stylish variety of shoes which Jordans 6 Retro is famous as Nike’s Air Jordan. It is a well-known name which is liked by most of the people Jordans Fusion 6.
  • sengnn163 01/18/2012 8:58pm
    Link Reply
    + 0
    ↓

    Discount Louboutins are brand new,never worn Christian Louboutin includes box and shoe bag .

  • sengnn163 01/18/2012 9:00pm
    Link Reply
    + 0
    ↓

    Discount Louboutins are brand new,never worn Christian Louboutin includes box and shoe bag . cheap louboutin high heels are sexy,gorgeous and fun.

  • sengnn163 01/18/2012 9:13pm
    Link Reply
    + 0
    ↓

    Discount Louboutins are brand new,never worn Christian Louboutin includes box and shoe bag . cheap louboutin high heels are sexy,gorgeous and fun. <a

  • LeagueDen 01/20/2012 12:18am
    Link Reply
    + 0
    &darr;

    League Den Sports Gaming

  • chrismarklee 01/27/2012 11:43pm
    Link Reply
    + 0
    &darr;

    People are hurting now big time. Congress needs to focus on US Job creation. Pass laws that encourage US jobs.

    Chris
    Owner Cel Financial Services
    Registered bonded California CTEC Tax Preparer
    Please visit my website for all your Income Tax Fillmore needs.
    http://www.taxprepfillmore.com/


Get Blog Updates by Email

Delivered by FeedBurner

Demand Question Time!



Find us at

Want a simple way to stay on top of what's happening in Congress?

Subscribe to this blog!

Send Us a Tip

You can submit a tip anonymously, or attributed to your own name and e-mail, whichever you prefer. Read more about submitting a tip.

Submit a tip




Recent Posts

Archives

See All Archives

Blogroll


See our Twitter List

Congress Watchers

OpenCongress is a free and open-source project of the Participatory Politics Foundation, a 501(c)3 non-profit organization with a mission to increase civic engagement. The non-profit Sunlight Foundation is the Founding and Primary Supporter of OpenCongress.