September 25, 2022

Extension Deal Reached For Continued Unemployment Benefits

unemployment benefits

President Obama finally got parties to agree on extending unemployment benefits for millions of Amercians

President Obama announced a deal had been reached with Republicans regarding the extension of unemployment benefits. The Republican party had been blocking the extension of benefits that ran out last week, affecting millions of Amercians.

Republicans wanted an extension of their own, on the Bush tax cuts that were expiring. In order to get things moving, President Obama had to agree to the tax cut extension which includes cuts for the richest two percent of Americans.

This represents a major concession for the President based on his campaign platform. He campaigned hard for ending tax cuts to those in the wealthiest of Americans category. In the end, Obama said he couldn’t continue his political fight at the expense of Americans who are suffering due to joblessness.

While one would think that conservatives in Congress would be thrilled with the deal, many are already voicing their unhappines over the extension of unemployment benefits. Some are concerned about focusing purely on unemployment checks vs. looking at how jobs can be created will affect the economy longer term.

In addition to the two extensions, both parties also agreed to a payroll tax holiday, continued relief of taxes as a result of the Recovery Act, and an estate tax reduction.