A disparate collection “of lawmakers and special interests is pushing to extend tax credits and other benefits — effectively proposing another economic stimulus with a price tag of at least $88 billion,” The Hill reports.
Democrats want to extend unemployment and health benefits set to expire at the end of the year that made up about $65 billion of the earlier stimulus. The House and Senate are likely to take up legislation when they return from the August recess.
Republican lawmakers have joined some Democrats and business groups like the National Association of Manufacturers in calling for an extension of a tax break expiring at the end of the year that allows businesses to write off losses. That “carryback” provision cost $15 billion in the February stimulus.
Sens. Max Baucus (D-Mont.) and Olympia Snowe (R-Maine) and Rep. Patrick Tiberi (R-Ohio) are pushing legislation to keep that business tax break alive. Tiberi also wants to extend separate expiring tax credits for first-time homeowners and car buyers that cost a combined $8.3 billion.
Some Democrats “would also extend federal subsidies for healthcare coverage to the unemployed under the COBRA program.”
The subsidies reduced COBRA premiums by 65 percent, offered coverage to some who weren’t eligible and were set to end in January. They cost nearly $25 billion.
Unions have thrown their support behind the effort, as have Democrats in the Senate, according to Sen. Debbie Stabenow (D-Mich.), a Finance Committee member. She and other Democrats said allowing the enhanced benefits to expire is the wrong thing to do with the nation dealing with an unemployment rate at a 26-year high.
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