Undecided Senate; Unemployment Benefits may expire for Some

Senate Democratic leaders conceded late last week that an effort to extend unemployment benefits and other expiring provisions through the end of the year will fail.

A nearly $200 billion package of unemployment benefits and tax credits floundered in the House after conservative Democrats balked at the prospect of adding $130 billion to the federal deficit.

As a result, unemployment benefits for hundreds of thousands of Americans will begin to run out on June 2.

Federal subsidies for COBRA health insurance premiums will begin to run out on May 31.

A freeze in scheduled cuts to doctors’ Medicare reimbursements will expire on May 31.

A senior Democratic Senate aide said that Democrats would offer a 14-day extension of unemployment insurance, COBRA, the so-called “doc fix” and the national flood insurance program.

Senate Republicans, however, are expected to object to the proposal because it would add $4 billion to the federal deficit.

Republicans will make a counteroffer of a short-term extension that would be paid for by funds from the economic stimulus program.

The senior Democratic aide said Democrats would object because they believe those funds should be devoted to job creation.

Senators left for the week long Memorial Day recess with this matter still up in the air.

The senior Democratic aide said lawmakers would reconsider an extension of expiring unemployment benefits and tax relief when they return to Washington on June 7.

As many as 200,000 people could lose their benefits in the first week after unemployment insurance expires.

Sad. Being dependent on government was never the purpose of the founding fathers, but considering the state of affairs presented to the American public; we should expect a little more resilience out of our paid incumbents.

I've seen sled dogs with more perseverance.


Rodney Gilbert, CLTC, is a Registered Financial Representative and President of United Life Financial LLC. Rodney has been assisting his clients achieve their financial objectives since 2007. He holds Series 6 and Series 63 licenses and the Certification in Long Term Care (CLTC) Designation. Rodney is also an avid speaker to those who want to learn more about tax planning with IRAs. For additional information, visit http://www.unitedlifefinancial.net/


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