The Senate Finance Committee revealed a new bipartisan jobs bill Thursday that would extend unemployment benefits until the end of May; the bill also includes tax incentives, green energy and infrastructure spending.
The Hiring Incentives to Restore Employment Act comes at a time when more than 100,000 Wisconsin residents face losing unemployment benefits as they expire at the end of February, according to the Department of Workforce Development.
“[Unemployment benefits are] a safety net, and an important safety net,” University of Wisconsin law instructor Mitch said. “If you take away the safety net, people get hurt.”
The bill is an $85 billion package and was drafted in a bipartisan committee led by Sen. Max Baucus, D-Montana.
In addition to extending unemployment insurance and federal benefits for health care, the bill also includes a payroll tax for employers hiring workers who were unemployed for at least 60 days and tax credits.
Earlier this month, a group of Wisconsin state legislators sent a letter to the Senate Finance Committee urging lawmakers to extend unemployment benefits.
The letter requested the benefits be extended through the end of the year, but the new Senate bill would only extend benefits through the month of May.
Some Wisconsin state legislators said they are uncertain whether this bill will be enough.
“There are a lot of people in Wisconsin that are jobless, and to lose this source of income would be devastating to their families,” Kelly Flury, spokesperson for Sen. Judy Robson, D-Beloit, said. “[The HIRE Act] will get them through May, then we’ll see if there needs to be another extension.”
The bill is designed to help stabilize the economy by helping to provide an income to the increasing number of unemployed Americans, Flury added.
“Giving business[es] the tools to create jobs is the number one priority,” Flury said.
The HIRE Act is a tool to support Americans who have lost their jobs and need additional support, Scott Mulhauser, spokesperson for Baucus, said in a statement.
Such a tool would require a timely introduction to work effectively, as certain state benefits are scheduled to end on Feb. 28, Baucus added.
White House Press Secretary Robert Gibbs released a statement saying President Barack Obama looks forward to working with members from both parties to pass this bill and create more jobs.
“The President is gratified to see the Senate moving forward in a bipartisan manner on steps to help put Americans back to work,” Gibbs said in the statement. “The American people want to see Washington put aside partisan differences and make progress on jobs.”
“You have to look at what the problem is. Benefits don’t create a job but prevent more problems,” Mitch said. “You can’t seek jobs without money for food, transportation and your family. That will end you up on another government program. It’s not a ‘welfare’ state but an important safety net.”
