Small Biz Credit, Jobless Benefits Pending Senate Approval
In President Obama’s push to boost the economy, two key pieces of legislation have passed the House, but have yet to pass the Senate. The bill to extend credit to small biz is pending a Senate vote and the bill to extend jobless benefits was voted down in the Senate last week. Both are, of course, Democrat-backed initiatives generally opposed by most Republicans.
Extending Credit to Small Biz
In the bill that passed the House on Thursday, the federal government would back local banks with the funds they need to extend more credit to small businesses. The goal is to infuse small biz with the capital they need to expand their businesses and, in turn, be able to hire more employees.
For obvious reasons, Obama backs this legislation as part of his plan to get America back to work.
If this bill passes the Senate, then the government will set up a $30 million fund to pay for this initiative, as managed by the Treasury Department. Of course, it is this very fact that has many Republicans opposed, noting that Americans do not want their tax dollars used to fund what looks like another bank bailout.
Extending Jobless Benefits
Citing similar objections to extending taxpayer-funded credit to small businesses, Republicans voted down legislation that would have extended jobless benefits.
With a $13 trillion national debt, Republicans are having a hard time getting behind this legislation which would tack onto that another $55 billion. As an alternative, Republicans would prefer funding this initiative by cutting spending in non-defense programs and freezing pay for federal employees.
In the version that passed the House last month, this job benefits bill would also would have 1) raised taxes on investment managers, 2) stopped a 21 percent Medicare pay cut for doctors treating elderly patients, and 3) extended extra Medicaid money to cash-strapped states.
The Senate vote against the bill comes after numerous revisions by Democrats, including:
- Removing a $25 a week unemployment insurance benefit increase
- Raising the oil spill liability trust fund tax to 49 cents a barrel from 8 cents a barrel
- Taxing 75 percent of investment fund managers income at ordinary tax rates, with an exception for assets held at least 5 years
Now it’s back to the drawing board for Democrats, determined to make the necessary adjustments so as to win enough Republican support of the job benefits bill.
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