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THE PROGRESSIVE REVIEW - May 31, 2010
Another Jobless Benefits Fight Looms in Congress
by: David Lightman and William Douglas
McClatchy Newspapers
Washington - Congress is braced for a new, unpredictable
battle this week over whether to fund more aid for jobless
workers as an estimated 1.2 million people face having
their benefits cut off next month unless lawmakers act.
The debate, expected to begin Tuesday in the House of
Representatives, will be the third time this year that
these provisions have faced expired funding.
In the first two instances, Congress initially balked, as
some Republicans were upset the spending wasn't paid for
with spending cuts. At one point in early April, Congress
left for a 16-day spring recess without funding the
benefits, leaving unemployed workers uncertain when they'd
get checks.
They eventually did, but the extension Congress approved
then expires on June 2. Lawmakers are scheduled to leave
Friday for a Memorial Day recess and won't return until
June 1.
This time, the prospects are getting dicey: An estimate by
the Congressional Budget Office says passing the measure
will add $133.7 billion to the deficit over 10 years and
states, which filled the gap in coverage last time, now are
more strapped by falling tax revenue.
At the National Employment Law Project, a liberal-leaning
activist group that Monday provided the 1.2 million
estimate, lobbyist Judy Conti said "it's anybody's guess"
what Congress will do this time.
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Maurice Emsellem, the group's co-policy director, said that
if Congress doesn't act soon, some states could find them-
selves in worse straits than when they stepped in before
to provide benefits for 13 to 20 weeks.
"This time around, there are fewer states in that
situation," Emsellem said. "The states will have to plan
around the extensions not coming." About 9.8 million
people are collecting jobless benefits. While many could
have their benefits disrupted if Congress fails to act,
they are expected to get paid retroactively.
What concerns moderate Democrats, as well as most
Republicans, is the estimate by the nonpartisan CBO that
passing the jobless plan, which includes several other
provisions, could increase the federal deficit by about
$133.7 billion over 10 years. Most of the added burden
would come this year and next.
"We have to start taking concrete steps to curb unnecessary
deficit spending, and that means taking a close look at
anything that is not offset or that we designate as
emergency. I am hearing strong concerns about voting on a
package with such a large price tag," said Rep. Stephanie
Herseth Sandlin of South Dakota, a key centrist Democrat.
Leading Democrats insist the money is needed because of
the economic troubles and therefore legitimately can be
added to the deficit. The April unemployment rate was
9.9 percent, up from 9.7 percent during the first three
months of this year. Last month, 15.3 million people were
unemployed.
"This is a bill about creating jobs, preventing outsourcing
of jobs overseas, closing loopholes of corporations and
wealthy individuals from avoiding U. S. taxes and meeting
the needs of those who have lost their jobs through no
fault of their own," said House Speaker Nancy Pelosi,
D-Calif.
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To Republicans and moderate Democrats, however, the deficit
increase sounds like another retreat from President Barack
Obama's February pledge to invoke a "pay as you go" require-
ment on many major programs.
"The American people know we can't tax and spend our
way back to a growing economy," said Rep. Mike Pence of
Indiana, the House Republican Conference Chairman.
Lobbyist Conti said the moderate-to-conservative Blue Dog
Democrats in the House might resist supporting extensions
because of the potential impact on the federal deficit.
In the Senate, she found it questionable whether there are
60 votes to approve extending benefits.
CBO predicts that under Obama's entire budget plan, the
deficit should hit $1.5 trillion this fiscal year and
$1.34 trillion next year. Over the next decade, CBO
projects deficits totaling about $9.755 trillion.
The bill the House could consider Tuesday would extend
extra jobless benefits for people out of work for an
extended period of time until Dec. 31. In addition, the
government would help unemployed people pay for their
health care benefits.
Businesses could benefit from extensions of expiring tax
breaks, such as the research and development credit, and
physicians would see their reimbursement rates for Medicare
patients, now scheduled for a 21 percent cut, be cut back
far less.
Few of these programs are paid for, however. Most of the
higher taxes involve new ways of taxing multinational
corporations and wealthy investment fund managers.
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