Republicans Block Democrats' Jobs Bill, Unemployment Benefits to Lapse

Strategic Insights -

The Senate has defeated the Democrats' jobs bill, which included a provision to extend weekly unemployment benefits for over a million people who have been out of work for more than six months. The 57-41 vote fell three votes short of the 60 needed to overcome a Republican filibuster, marking a significant setback for President Barack Obama's administration. The bill would have also provided $16 billion in new aid to states, preserved jobs for thousands of state and local government workers, and offered tax breaks for businesses.

Key Takeaways:

  • The bill's defeat means that unemployment benefits will phase out for over 200,000 people per week.
  • Governors who were counting on federal aid will have to consider budget cuts, tax hikes, and layoffs of state workers.
  • The bill included tax increases on domestically produced oil and on investment fund managers.
  • It also included dozens of tax breaks sought by business lobbyists.
  • The bill's state aid provision was reduced to allow Democrats to claim it was fully paid for except for the unemployment insurance extension.
  • Republicans argued that the bill would add new taxes and over $30 billion to the national debt.

Statistics:

  • 57-41: The Senate vote to pass the Democrats' jobs bill.
  • 60: The number of votes required to overcome a Republican filibuster.
  • 1 million: The number of people who would have benefited from the extension of weekly unemployment benefits.
  • $16 billion: The amount of new aid to states included in the bill.
  • 200,000: The number of people whose unemployment benefits will phase out per week.
  • $13 trillion: The current national debt.
  • $30 billion: The amount of new taxes and spending added to the national debt by the bill, according to Republicans.
  • 6 months: The length of time a person has to be out of work for their benefits to lapse.
  • $1 billion: The amount of money allocated for a youth summer jobs initiative.
  • 10%: The sales tax deduction that mainly helps people in states without income taxes.

Sources:

  • The Associated Press
  • Senate votes on the jobs bill
  • White House officials
  • President Barack Obama
  • Senator Max Baucus (D-Mont.)
  • Senator Olympia Snowe (R-Maine)
  • Senator Susan Collins (R-Maine)
  • Senator Mitch McConnell (R-Ky.)