Talking Points Memo snagged the details, written up by the House Ways and Means Committee, of the payroll tax cut/unemployment insurance/”doc fix” bill. So let’s go over it.
We know the topline stuff: it’s a $150 billion piece of legislation, and $52 billion will be paid for. The payroll tax cut, extended to the end of 2012, will not have an offset. But the offsets for the unemployment extension include a sell-off of wireless spectrum, and an increase in the contribution to pension benefits for new federal employees. For the doc fix, the offsets include a variety of health care-related items, including a damaging 33% cut to the Health Care Prevention Fund (called a “slush fund” in this document).
Then there’s the changes to the unemployment system. Under the bill, unemployment beneficiaries in every state will lose anywhere between 19 and 36 weeks of unemployment benefits by September of this year. It breaks down like this (previous maximum benefit in parentheses):
States with unemployment rate under 6%: 40 weeks (60 weeks)
6.0%-6.4%: 54 weeks (73)
6.5%-6.9%: 54 weeks (86)
7.0%-7.9%: 63 weeks (86)
8.0%-8.4%: 63 weeks (93)
8.5%-8.9%: 63 weeks (99)
9.0% and above: 73 weeks (99)
These are significant drops in the numbers, and more people – I don’t have a precise number, but I would put it in the hundreds of thousands, considering that the average length of unemployment right now is around 43 weeks – will see their benefits expire.
In addition, states will be allowed to mandate drug testing as a condition of receiving unemployment benefits. Similarly, the bill will extend welfare benefits for the rest of the year but ensure that ATMs at casinos, liquor stores and strip clubs will not pay out those benefits (this seems impossible to enforce, and also, what constitutes a liquor store, which could sell much more than just liquor?). Up to 10 states, under the plan, could institute demonstration re-employment projects like Georgia Works.
I guess I feel about this the same way as Digby – we’re living in some kind of era of diminished expectations if this can be seen as a victory for liberals.
Can I just say how awesome it is that progressives are now thought to be “winning” issues by cutting taxes, cutting unemployment benefits, cutting federal pensions, cutting health programs and agreeing to mandatory drug testing? If we keep this up we’ll put Republicans out of business in no time. They will be superfluous [...]
If one were to have asked me three years ago if we’d be cutting unemployment benefits with 8.4% unemployed, I’d have laughed in their face. But that was before austerity became our new motto. Now, it’s a reasonable compromise for tax cuts. What a world.
Not much more to say.




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It looks like the Serious People in D.C. have been reading crap like this
and deciding that cutting unemployment insurance is a good idea.
CBPP put the number who’d lose rations at over 4 1/2 million if all federal aid was dropped, so you’re still talking millions…
http://www.offthechartsblog.org/what-happens-if-congress-doesn%E2%80%99t-continue-emergency-unemployment-benefits/
I don’t think anyone sees it as a victory for liberals. The most optimistic see it as a strategic retreat. The least optimistic see it as just a retreat.
Those officials who were elected to be the caretakers of the nation are playing fast and loose with poverty, health services, retirements and anything else they think thay can mangle. This is more smoke and mirrors, three card monty and a shell game with no pea under any of the three shells. Once again,at first blush, some it looks good up front, and on paper, but the back end is either a net gain of zero or back-pedaling for the majority. Very disappointing. All this talk and hot air and the balloon is still on the ground.
Hi David have you seen this
Plunging deeper into the farce-hole, the FT reports tonight that Obama’s foreclosure settlement with the banks over their improper seizure of tax-paying US citizens’ homes will in fact be subsidized by those very same US taxpayers. It is a hidden clause (that has not been made public yet) that allows the banks to count future loan modifications under the $30bn (taxpayer funded) HAMP initiative towards their $35bn agreement to restructure obligations under the new settlement. As the FT goes on to note, BofA will be able to use future mods made under HAMP towards the $7.6bn in borrower assistance it is committed to provide – which means, in a (as TARP inspector general Neil Barofsky describes) ‘scandalous’ turn of events the bank will receive payments for averting a borrower default and be reimbursed by the taxpayer for the principal write-down. We have much stronger words for how we are feeling about this but Barofsky sums it up calmly “It turns the notion that this is about justice and accountability on its head”. Are the Big Five banks truly beyond the law?
http://www.zerohedge.com/news/housing-settlement-be-taxpayer-funded-confirming-big-five-banks-are-beyond-law
Republican policies or Republican policies?
Yes, being swept back to the 18th century instead of the 15th century is counted as a victory.
Yea Democrats! Never give an inch when a mile will do.
I’m not sure why digby is upset about this, her site was still cheering for 0 no matter what did to the citizens of this nation/world. I haven’t been there since being banned from commenting so may be she has woken up to how Main Street is being crushed by this govt.
mswinkle
didn’t you just love that bit of news;) Main Street pays for the criminal class to keep on stealing every little bit they can until we’ll have to take away the safety net from Main Street. Shock Doctrine
“Are the Big Five banks truly beyond the law?”
I’m sorry to realize that you were only being rhetorical.
This is going to go on and on and on until we get other candidates to run and we remove all of these phonys.
Some have argued that unemployment benefits that are more generous and last longer reduces a worker’s incentive to quickly find a new job.
And some, even have the unconscionable temerity to suggest that there are simply not enough living-wage jobs available.
Ain’t actual reality a total bitch, alan1tx?
Especially when it leads to mendacious and callous bitching?
Ah, well …
DW
Sometimes I am blinking speechless by the blinking stupidity and insensitivity of the blinking politicians. No one will look for a job if they do not have gas money, rent money, bus fare and food. That’s the bottom line. That is reality. When is government going to join us in the “reality community”???? I am sure the jobless folks living in the flash flood sewers under Las Vegas are impressed by this latest “strategic defeat” to not help them be able to live like humans above ground.
I know, what a hack.
The Perfect trifecta for corporate, enabled under the color of law. Housing,, Energy, Healthcare. All subsidized by the governed, who lay prone over the oil drum?
The transfer of wealth for “fueling” auto transportation in one day squanders over a billion dollars. The United States Government manipulated by corporate interests,”perpetuates” a wasteful paradigm.
.80 cents of every dollar spent on gasoline, wasted
For every $1,000,000,000 of gas purchased, $800,000,000 dollars of economic value wasted.
A war in energy would prove more beneficial to society, as was the space program. So how many trillions of dollars will Americans waste just using gasoline driving to work daily, in the next 5 years??? Never mind the necessitated movement of product via trucking feet? Everything else is a distraction. The Erie Canal reduced the cost of transportation in America by 95%.
http://en.wikipedia.org/wiki/Erie_Canal
” …United States that did not require portage, was faster than carts pulled by draft animals, and cut transport costs by about 95%. ”
Imagine $950,000,000 reinvested in America each day, opposed to extracted? All this other “crap” would not matter. The biggest tax on life is energy. Even “cavemen” realized that?
If I’m average, (3 gallons per day) I’d estimate just under $2T.
Just what happens when the pigeons come home to shit when this bullshit ‘deal’ expires at the same time the bush/obama tax cuts also expire?
… somebody gets mad enough to bury the snot-locker holding voter drones with a bushel of “White Man Can’t Jump” burned to DVD-Rs off PirateBay and says STOP HAPPENING AGAIN! And it goes without saying I hope I never get that fucking pissed — I’d just as soon snap one of those DVDs into an improvised shiv, and go on a femoral artery stabbin’ spree to ensure they’ll never happen again …
There will never be enough “living-wage jobs” because americans usually live beyond their means.