Amid Deficit Worries, Democrats Trim Unemployment Bill

June 16, 2010 RSS Feed Print
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WASHINGTON — Virtually certain of losing a showdown vote in the Senate, Democrats frustrated in their quest to extend jobless benefits and help for doctors facing Medicare payment cuts are scaling back a catchall tax and spending bill.

Anxiety over record budget deficits is fueling the moves, which include rolling back last year's $25 a week increase in unemployment checks and giving doctors just a short reprieve from scheduled cuts in their Medicare payments.

First, however, comes a key vote Wednesday morning on a sweeping measure containing many provisions long overdue for completion by Congress, including the renewal of jobless benefits and dozens of popular but expired tax breaks for individuals and businesses.

It'll take at least two Republicans to clear a supermajority hurdle requiring 60 votes in the 100-member Senate since the pending version violates budget rules by adding $80 billion to the deficit over the upcoming decade.

Those votes are lacking, Democrats admit, even though an earlier version passed the Senate fairly easily just three months ago. Now, with voter anger over deficits rising, GOP support has evaporated, which means Democrats will have to pull out the shears and cut the measure back to have any hope of passing it with the handful of Republican votes that will be needed.

As a result, people on unemployment insurance are likely to see their benefits cut by $25 a week. Doctors are likely to win only a seven- month reprieve from a 21 percent cut in their Medicare payments that's set to take effect Friday. Those steps would appear to cut about $20 billion from the measure.

And it's not clear that those steps will be enough to attract the necessary GOP votes to reach the 60-vote threshold needed to advance an as-yet unseen, scaled-back version of the measure.

"They've laid the straw that broke the camel's back as far as I'm concerned," said Sen. George Voinovich, R-Ohio, who provided a critical vote to advance an earlier version of the measure in March. "We're talking $50 billion in new taxes, $80 billion in new borrowing. ... I've gotten to the point where I've had it." [See which organizations donate to Voinovich.]

Over the weekend, President Barack Obama renewed his push for the measure, warning that "hundreds of thousands" of state and local government jobs could be lost without $24 billion in Medicaid money to help states balance their budgets and $23 billion more to prevent layoffs at local school districts.

The pending bill is a catchall measure anchored by a six-month extension of jobless benefits for people who have been out of work for more than six months. It also includes the $24 billion in help for cash-starved state governments, dozens of expired tax breaks for individuals and businesses, a fivefold increase in the per barrel tax on oil drilled offshore and a new tax on investment fund managers.

Nine Republicans supported the earlier version of the bill against a GOP filibuster, as did every Democrat but Ben Nelson of Nebraska. Now, a lot of that support has eroded.

"I'm very concerned about the cost of the bill," said Susan Collins, R-Maine.

Tags:
George Voinovich,
Ben Nelson,
Susan Collins,
Associated Press,
Congress,
unemployment,
Medicare

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Come on Congress...do something or we will fire you come November!

Tim of OH 3:38PM June 22, 2010

with most of America unemployed and now not receiving any money how will this help the economy. If the GOP is fed up with the deficeit maybe they could cut back their saleries? the get the same salery even after they are voted out of office or they quit because of sex scandals, if we cut the retirement for politicians the country would not have any financial problems. So before you cause me to be homeless reach into your own pocket and see if you really need all the stuff you think you are intitled to, after all my taxes pay your salery. And if peopel who don't need it didn't take social security we would be in better shape. Also unemployed people are not to lazy to work, there are no jobs. And the stimulas money been given to people who needed it not big business that might have helped the economy. Now the CEO's of all these big corporations are sitting around with bulging pockets because the government put the money in their pockets with the intentions they help people. Guess what in America the rich get richer with government help and the poor get poorer with government help. I can't aford my medication but hey who cares. Certainly not the people who are able to keep up with the Joneses// If you have more money than you need why can't you help someone? Is it really that hard to help???? I may be unemployed and not be able to aford food and medication, but I can walk to the polls to vote, as can every unemployed American

Emma Robinette of IN 7:20AM June 22, 2010

I have been off work and on work off work since August 2009. I worked out with the Census Bureas May 29, 2010 went back to unemployment which I have not received yet and was told the State extenders was cancelled on May 24, 2010 and since it no longer exist I do not even qualify for a state extenders must less the federal. I guess, I cut my nose off when I took the Census's job thinking I would have a state and then a federal extender. I'm just out of luck and money. How come a person can not get at least one state extender/ It does not exist.

Nancy Knight

Gadsden, AL

Nancy Knight of AL 10:14PM June 21, 2010

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