Off-setting domestic budget no way to fund unemployment extentions

The Senate is going to vote again, tomorrow, on whether or not to extend unemployment insurance payments to out of work Americans. The Senate Republicans have been blocking this relief measure much like they block everything else - by pointing to a ballooning deficit. Be that as it may, it’s hurting a lot of people.

As Senate Majority Leader Harry Reid (D-Nev.) put it, “They’re trying to understand why at this pressing moment — when jobs are harder to come by than at any other time in recent memory — Congress can’t get its act together to extend emergency insurance, just as we’ve always done with bipartisan backing.”

Let’s get a few things straight about how unemployment insurance (UI) benefits are funded. Note the use of the word ‘insurance’. It’s a fund that we all pay into from our earnings, for that rainy day - or Great HUGE FREAKING RECESSION.

We’re running out of money in this fund right now because the economy didn’t recover as quickly as we had hoped and folks are still out of work. When this has happened before, the benefits were extended beyond the standard 26-weeks and ‘paid for’, as the deficit hawks would call it, from increased UI payroll taxes, other tax increases for business or elimination of certain tax exclusions are reductions. Other times the federal government would sort of loan the money to the states, which the states would later pay back. With expanded employment in an economic upturn, you have more working people paying into the fund, and can pay back your debts.

As much as the Republicans like to claim Democrats never want to ‘pay’ for any program or benefit, Republicans never ever want to raise a tax or eliminate a tax cut for the wealthy - their primary donors - which would also help toward ‘paying’ for the benefits. What the Republicans can’t quit suggesting, is that somehow Congress should off-set the cost of extending the UI benefits by cutting domestic spending in the general budget.

That’s never been done. Never.

The unemployed got 13-weeks of extended benefits in 1991, signed by George H. W. Bush, and paid for by tax code changes for both corporations and employees. That’s the way it works - until now.

Now, the Republicans, never content to just be obstructionist, want to change the rules.

Fortunately, it looks like Senate Dems will have the votes on Tuesday - with Sen. Robert Byrd’s replacement, Carte Goodwin, coming online - to get ‘er done.

Be sure to pass this bit of historical wisdom along to your defecit-hawk Republican friends.