Senate Passes Jobless Aid Bill
Last week the Senate approved a measure that would extend unemployment benefits to the end of the year, extend the COBRA subsidy under the American Reinvestment and Recovery Act (ARRA), and extend tax cuts, ease corporate pension requirements and do away with cuts in Medicare reimbursements by doctors. It will now go to the House.
The bill will:
1) Extend unemployment benefits until December 31, 2010, which would offer many workers up to a total of 99 weeks of unemployment insurance.
2) Extend the COBRA subsidy to those workers involuntarily terminated from March 1 through March 31, 2010.
3) Send aid to states with poor or no tax revenue in an attempt to prevent layoffs of public service employees.
4) Extend a $250 tax deduction for teachers who buy their own classroom supplies.
5) Offer tax credits for installing energy-efficient windows, doors and skylights that meet the 2010 Energy Star standards.
All of the Democratic and six Republican Senators voted in favor of the bill. Those opposed to the bill fear it will add to the $12.5 trillion deficit, while supporters contend that unemployment benefits act as a short-term stimulus, since those strapped for cash tend to spend it quickly, thereby boosting demand in the economy.
For more information, see
“Senate passes jobless aid, business tax breaks,” (http://www.msnbc.msn.com/id/35776449/ns/business-economy_at_a_crossroads/)
“Senate Approves $138 Billion Bill Extending Unemployment Aid,” (http://www.bloomberg.com/apps/news?pid=20601087&sid=aj54ARnTfC4k&pos=8)