The Senate Democrats have chalked out a plan which combines in one bill the unemployment benefits with an extension of a popular tax credit for people who buy new homes. But they are still short by a vote of the 60 required to push the bill, Senate Majority Leader, Harry Reid, informed on Wednesday. Reid revealed that he has commitment from two Republican senators to support the bill, but with the death of Sen. Robert Byrd, Democrats need another vote.
The homebuyers who signed purchase agreements by April 30 must close on their new homes by Wednesday to qualify for credits of up to $8,000, as per the current law. The bill would give those buyers some breathing space by giving them time until September to complete the purchases and qualify for the credit.
Democrats plan to combine the two provisions in order to garner support from the Republicans for the bill. Democrats have been making continuous efforts to pass an extension of unemployment benefits as part of a larger tax and spending package, but the larger bill died in the Senate last week.
With no extension, there would be continued phasing out of unemployment payments for more than 200,000 people a week. More than 1 million people have already lost benefits, said Labor Secretary Hilda Solis.
The Democrats argue that the benefits would act as an insurance against the economy sliding back into recession while the Republicans hold the view that adding nearly $34 billion to the budget deficit will only contribute to the nation's economic problems.
"Both sides have offered ways to address the programs in this bill that we agree should be extended," said Senate Minority Leader Mitch McConnell of Kentucky. "The only difference is that Democrats are demanding that we add the cost to an already unsustainable $13 trillion national debt."
