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Senate passes $149 billion for jobless aid
People looking for jobs meet professionals from more than 30 employers at the UJA-Federation of New York's Connect to Care job fair in New York, in this file image from March 2, 2010.
Credit: Reuters/Shannon Stapleton/Files
WASHINGTON |
WASHINGTON (Reuters) - The Senate on Wednesday passed a $149 billion package of jobless aid and tax breaks, as Democrats continued efforts to lower the 9.7 percent unemployment rate before congressional elections in November.
The measure, approved by a vote of 62 to 36, now heads to the House of Representatives, where many Democrats have pushed for more aggressive job-creation measures in the face of the worst U.S. economic downturn since the 1930s.
President Barack Obama said the vote would help small businesses and jobless workers, and expressed thanks for the bipartisan support that it attracted.
"I am grateful to senators in both parties who took one more step forward today in getting our nation back on a solid economic footing," he said in a statement.
Democrats say job creation is their top priority this year as they head into an election season that could possibly cost them control of Congress.
Both chambers have now passed two job-creation bills, but they have yet to resolve their differences and finish legislation that Obama can sign into law.
Democrats passed an $863 billion stimulus measure last year to battle the recession. That effort created up to 2.1 million jobs, according to the nonpartisan Congressional Budget Office, but the high price tag has prompted a growing voter backlash.
The bill passed on Wednesday by the Senate largely continues existing government policies. Jobless workers would see their unemployment benefits and healthcare subsidies extended to the end of 2010, while businesses would once again benefit from $25 billion worth of tax breaks that expired at the end of 2009.
The bill's $149 billion in new spending is partly offset by $37 billion in revenue raised by closing tax loopholes.
That could conflict with Obama's plans to use the new revenue to help pay for his proposed healthcare overhaul.
HELP FOR STATES
Cash-strapped states would get $25 billion to help cover their portion of the Medicaid government-run healthcare program for the poor.
More help could be on the way for states, which face yawning budget deficits and, unlike the federal government, must balance their budgets each year.
Representative George Miller, a senior House Democrat, introduced a bill on Wednesday that would give state and local governments an additional $98.5 billion to help avoid layoffs of teachers, police officers and other public employees.
Other House Democrats say Congress should boost transportation spending to put more construction workers back to work.
Both the House and the Senate have approved a $13 billion payroll tax cut for businesses that hire unemployed workers, but the Senate needs to approve the measure again before Obama can sign it into law.
White House economic adviser Christina Romer said on Tuesday that a similar hiring credit proposed by Obama would generate 250,000 jobs at a cost of $13 billion.
The U.S. economy has shed 8.4 million jobs since entering the recession in December 2007, though the pace of job loss has slowed since the recovery began in the second half of last year.
More than 40 percent of unemployed Americans have been out of work for at least six months, the usual cutoff for jobless benefits. Congress extended the program to cover those out of work for nearly two years in some high-unemployment areas, but millions could still exhaust their benefits starting next month without a further extension.
Unemployment aid does not directly create jobs, but economists say it is a cost-effective way to stimulate the economy because recipients spend the money quickly.
But it is not cheap. Extending benefits through the end of the year would cost $70 billion. Many Republicans voted against the measure, arguing that spending in other areas should be cut to cover all of its costs.
(Additional reporting by Lisa Lambert and Emily Kaiser; editing by Paul Simao and Doina Chiacu.)
It’s a little late for that, don’t we think? I am happy that somebody in Congress is focusing on jobs for a change
Below is the key and most viable initiative to return people back to work. It’s time for bold action…a specific plan…targeting a specific group…for a specific issue….job creation. This initiative will literally create 1 to 2 million+ job opportunities utilizing existing programs and funding. To ignore such an initiative is truly an injustice to the jobless and their families.
Plan: Allow seniors age 62-64 who have NOT yet enrolled in Social Security to be Medicare eligible if they retire early. Our survey shows vast majority of these targeted seniors continue to work or seek employment for employer health insurance… with plans to retire at age 65…when Medicare eligible. The KEY is to speed attrition of these seniors from the labor pool by allowing Medicare eligibility. A time sensitive program…a 30-90 day window of opportunity for these seniors to decide if they would take advantage of this Medicare incentive or continue to work. A vast number would retire creating vast opportunities for the jobless. Healthy seniors would be NO additional cost to Medicare. This plan will produce results unmatched by any stimulus… past or present…using existing programs and funds.
Bonus For Business: Our survey had employers applauding such an initiative for these seniors. Why? Their response was unanimous…Retiring senior employees would be replaced by entry level…lesser salary and benefited employees. Examples given: New employees earning $3-$5 less/hour than the exiting seniors would result in business payroll saving $5,000-$10,000 per year/per new hire…for a number of years. This is the bottom line help business needs…and this Medicare incentive would deliver this help.
Why Plan Is So Critical: Business and consumer confidence very low…disturbing news for the jobless. Worker productivity is up…disturbing news for the jobless. More seniors are continuing to work longer…disturbing news for the jobless. This Medicare incentive will produce positive results in a very short time. Not a fixall…but a bold move foward.
Social Security/Medicare: The CBO has stated SS is running a surplus…taking in more than pays out and is funded to 2037. Medicare is funded to 2018 and stated both programs will need to be re-structured and strengthened in the future. Returning the jobless to work will again have them contributing into these programs…generating critical tax revenues for the states.These two programs…SS and Medicare are tools that should be used now to speed senior attrition…create vast job opportunities…provide business a real payroll incentive.
It Doesn’t Stop With The Jobless: It goes far beyond the current unemployed. There are additional millions of under-employed…graduates ready to begin their careers…returning military personnel…and students looking for their first job. 36,000 people lost their jobs last month…How many may have retained their jobs if retiring senior co-workers were allowed this Medicare incentive?
Now was that SO hard, Republicants/GOP? WHY couldn’t you have passed this job aid bill a long time ago — when you FIRST discovered Americans were losing their jobs hand-over-fist? But you closed down BIG time when President Obama TOLD you that unless you agreed to help, the economic crisis in this country would spiral out of control. You’ve closed down on EVERYTHING the President has proposed to assist the American people (e.g., affordable healthcare… Does THAT ring any bells?) I know, I know… The GOP had a point to prove to Obama’s administration: “it doesn’t make any difference WHAT you do, we will NOT cooperate nor participate. This will ensure your certain failure as President, because you NEED us to achieve your agenda…” BUT… Not only has your unresponsiveness and insensitivity been perpetrated against President Obama — but to US, the hard-working people of this country who BUILT America!! At EVERY turn you have simply REFUSED to help President Obama HELP US. And we won’t forget…
Time2Panic, if you take a moment to compare the legislation refused by the legislation passed, you will see how much “lobbyist pork” was removed. I won’t try to sway your opinion – you actually make a valid point: you state the GOP will not participate in this administration’s agenda. I certainly hope not.
You closed with a promise of not forgetting. Again, I certainly hope not.
