Reuters
Unemployed workers would get more jobless benefits and homebuyers and businesses would get additional tax breaks under a bill that the U.S. Senate is likely to pass on Wednesday or Thursday.
Democratic leaders in the House of Representatives have promised quick action on the bill.
Here is a description of each of the bill's provisions:
UNEMPLOYMENT INSURANCE
* Jobless workers who have exhausted their unemployment benefits would get an additional 14 weeks of aid.
* Workers living in states where the unemployment rate is above 8.5 percent would get an additional six weeks of benefits, for a total of 20 extra weeks of benefits.
As of September, 27 states, the District of Columbia and Puerto Rico had unemployment rates above 8.5 percent. Nationwide, unemployment stands at 9.8 percent, the highest since 1983, and analysts expect it to climb to 9.9 percent when figures for October are released on Friday.
About 3.4 million people now are receiving unemployment aid, according to the Labor Department.
* Roughly 600,000 workers may have already exhausted their benefits, according to the National Employment Law Project, and 1.3 million could do so by the end of the year.
* Some workers would now be eligible for up to 79 weeks of unemployment insurance, three times the 26-week limit that was in place before the current recession.
* The additional benefits would be paid for by extending a tax on employers through June 30, 2011.
Democratic leaders in the House of Representatives have promised quick action on the bill.
Here is a description of each of the bill's provisions:
UNEMPLOYMENT INSURANCE
* Jobless workers who have exhausted their unemployment benefits would get an additional 14 weeks of aid.
* Workers living in states where the unemployment rate is above 8.5 percent would get an additional six weeks of benefits, for a total of 20 extra weeks of benefits.
As of September, 27 states, the District of Columbia and Puerto Rico had unemployment rates above 8.5 percent. Nationwide, unemployment stands at 9.8 percent, the highest since 1983, and analysts expect it to climb to 9.9 percent when figures for October are released on Friday.
About 3.4 million people now are receiving unemployment aid, according to the Labor Department.
* Roughly 600,000 workers may have already exhausted their benefits, according to the National Employment Law Project, and 1.3 million could do so by the end of the year.
* Some workers would now be eligible for up to 79 weeks of unemployment insurance, three times the 26-week limit that was in place before the current recession.
* The additional benefits would be paid for by extending a tax on employers through June 30, 2011.
States that would qualify for the extensions would have to have unemployment rates hitting 8.5 percent or higher under a Senate bill co-sponsored by Carl Levin, D-Detroit, and Debbie Stabenow, D-Lansing, or 9 percent or higher under the House bill. Michigan’s unemployment rate is 15 percent, the highest in the nation.
HOMEBUYER CREDIT
* Extends an existing $8,000 tax credit for first-time homebuyers until April 30, 2010.
* That credit, which was due to expire on Nov. 30, has helped the housing industry recover from the worst recession since the Great Depression of the 1930s.
* Homebuyers who already own a home and have lived there for at least five years would be eligible for a $6,500 tax credit.
* More affluent buyers would be eligible for the credit, as it would be phased out for individuals who earn more than $125,000 or families that earn more than $225,000. The current credit is phased out for individuals who earn more than $75,000 and families that earn more than $150,00.
* Home purchases under contract as of April 30, 2010, would have to close within 60 days to be eligible for the credit.
* The credit only applies to the purchase of principal residences that cost $800,000 or less.
* Would cost $10.8 billion over 10 years.
BUSINESS TAX CREDIT
* Would allow all businesses to apply losses sustained in 2008 or 2009 to the five prior years, enabling them to recover taxes paid at a time when the economy was booming.
* Businesses would be able to apply losses from either 2008 or 2009 but not both years.
* The losses would apply to full-year taxable income for the prior four years and 50 percent of income in the fifth year.
* A similar tax credit already on the books only applies to small businesses that earn less than $15 million per year.
* Would cost $10.4 billion over 10 years.
OTHER PROVISIONS
* Would delay implementation of another tax rule that governs how companies can allocate interest expenses between the United States and foreign sources.
* That rule had been scheduled to take effect in 2011 but now would be pushed back until 2018, which would save the government $20.1 billion over 10 years.
* Would also boost penalties for certain types of companies that do not file tax returns, which would raise $1.2 billion over 10 years.
* Extends an existing $8,000 tax credit for first-time homebuyers until April 30, 2010.
* That credit, which was due to expire on Nov. 30, has helped the housing industry recover from the worst recession since the Great Depression of the 1930s.
* Homebuyers who already own a home and have lived there for at least five years would be eligible for a $6,500 tax credit.
* More affluent buyers would be eligible for the credit, as it would be phased out for individuals who earn more than $125,000 or families that earn more than $225,000. The current credit is phased out for individuals who earn more than $75,000 and families that earn more than $150,00.
* Home purchases under contract as of April 30, 2010, would have to close within 60 days to be eligible for the credit.
* The credit only applies to the purchase of principal residences that cost $800,000 or less.
* Would cost $10.8 billion over 10 years.
BUSINESS TAX CREDIT
* Would allow all businesses to apply losses sustained in 2008 or 2009 to the five prior years, enabling them to recover taxes paid at a time when the economy was booming.
* Businesses would be able to apply losses from either 2008 or 2009 but not both years.
* The losses would apply to full-year taxable income for the prior four years and 50 percent of income in the fifth year.
* A similar tax credit already on the books only applies to small businesses that earn less than $15 million per year.
* Would cost $10.4 billion over 10 years.
OTHER PROVISIONS
* Would delay implementation of another tax rule that governs how companies can allocate interest expenses between the United States and foreign sources.
* That rule had been scheduled to take effect in 2011 but now would be pushed back until 2018, which would save the government $20.1 billion over 10 years.
* Would also boost penalties for certain types of companies that do not file tax returns, which would raise $1.2 billion over 10 years.
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