(House) Republicans Move to Cut U.S. Unemployment Benefits to Ease Business Taxes - Bloomberg

[WillyT]

Republicans Move to Cut U.S. Unemployment Benefits to Ease Business Taxes
By William Selway - Bloomberg
May 11, 2011 10:40 AM PT

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House Republicans moved to let U.S. states cut federally paid jobless benefits and use the funds to avert tax increases on businesses, which Democrats blasted as an attack on the unemployed.

The Ways and Means Committee passed a bill by 20-14 today that lets states shift some of the $31 billion they are set to get for extended unemployment aid to prevent the tax increases, pay back federal loans or fund job-training programs. Republican David Camp, chairman of the House of Representatives panel, said the bill would allow states to target the money more effectively.

“Some argued that these benefits would increase economic activity and employment, but the only increase we have seen is an increase in unemployment taxes,” Camp, from Michigan, said in Washington today. “These taxes on jobs are only making it harder for the millions of unemployed workers to get back to work.”

Temporary federal funds allow the 26 weeks of unemployment aid typically paid by states to be extended to as long as 99 weeks. Today’s measure gives states greater sway over the money, now used only for unemployment checks. They could use it instead to shield employers from tax increases triggered in states that have borrowed $41 billion to pay their share of jobless claims after they ran out of funds.

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More: http://www.bloomberg.com/news/2011-05-11/u-s-states-may-redirect-jobless-benefit-funds-under-republicans-proposal.html

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[RKP5637]

1. One literally reaches the point wherein they see no hope for the US. n/t