The House of Representatives passed HR 3630. This is an omnibus measure that contains a variety of items. Among them are the following:
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It would reduce unemployment benefits by one half cutting them from 99 to 59 weeks.
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It would let the last leg of federal unemployment insurance extension, 13 to 20 weeks to expire. This would impact the states with the highest rates of unemployment.
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It would require means testing of workers based on income.
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There would be a $5.00 charge for each reemployment.
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Waivers would be granted for workforce programs.
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States would be allowed leeway in Non Reduction Rules. This means they could slash benefits.
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Deny benefits to workers who are not high school graduates or enrolled in a GED program.
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States could start drug testing of each applicant.
In addition, the bill extends the payroll tax at 4.2% until 2013. It also extends the depreciation provision of a 50% write off for new equipment.
It denies the refundable Child Tax Credit for low-income families, reduces non-security discretionary programs by $26 billion and speeds up the construction of the Keystone XL oil sands pipeline.
It is estimated that of the 13.3 million unemployed in November, 43% or 6 million have been unemployed six months or more. 315,000 persons have dropped out of the workforce because their benefits have expired. The reduction in benefits obviously would drive more people into extreme poverty and homelessness.
If we look at small business insurance in San Francisco, the extension of the depreciation provision is a stimulus. Business owners can plan ahead and make purchases of new equipment with the assurance that they will get the 50% depreciation write off. This is a boost for business insurance in San Francisco.
The extension of the payroll tax at 4.2% will aid small businesses. It is estimated that 70% of consumer purchases are generated by small businesses.