Intro To Business - Current Event Summary – Assignment Example
Summary of Article The article on Yahoo Finance is about the Economic Stimulus Recovery Act passed in February. Lawmakers are considering amendments to the existing act to offset the rising unemployment rate in the country, and the worsening state of the U.S. economy. In the latest stream of conventions at Capitol Hill to be held on Wednesday, economists and lawmakers would put ‘job creation’ at the crux of their discussion. Lawmakers would look to propose measures that would increase the planned $787 billion, and help to eradicate the unemployment rate in the country. Lawmakers would voice their opinions on different issues prevailing in the economy, but the most prominent ones would be unemployment benefits extension, cobra premium subsidy extension, emergency payment to seniors, homebuyer tax credit expansion, and job credit creation. According to the National Employment Law Project, an estimated 1.3 million unemployed would run out of benefits by the end of the year. It is expected that lawmakers would extend benefits to the unemployed. Both the House and the Senate want to do the same thing, however: they might disagree on how to finance the extension of benefits. An estimated 2.4 billion would be required to support the unemployed, and the possible way of financing that amount would be to include an additional tax on employers.
Furthermore, the federal government will consider a subsidy for the unemployed to continue their health coverage from their former employers. The Internal Revenue Service agreed to pay 65% for health coverage of the unemployed, which would be similar to what the employer pays for an employee. Also, the new administration is planning to give $250 to seniors, veterans and the disabled next year. This has been proposed by the Democrats in the House and the Senate to compensate them for the adjustment in the cost of living, but people argue that the cost of living has not increased, and therefore, social security payments are sufficient to carry the burden of seniors. Moreover, the first time homebuyer credit might see an extension to previous home-buyers as well as people who make above the prescribed threshold. Furthermore, the home-buyer credit is due to expire on Nov 30, but the lawmakers are considering a proposal to extend the existing deadline of the home-buyer credit.
Also, a new type of credit is being thought of, as the government expects the unemployment rate to be 10% in 2010. That is the employer tax credit, where the employers who would hire employees would get a refund of 15% of their new wage costs in 2010 and 10%in 2011. This would motivate the employers to hire people, as the government will pay for some expenses of hiring the new employee. According to estimates, the new type of credit can create 5.1 million jobs in the next two years.
1. Sahadi, J. Yahoo Finance. CNNMoney.com, October 21, 2009. Electronic Article. October 23, 2009.