Don't look now -- it's a second stimulus
Posted
Oct 21 2009, 12:49 PM
by
Kim Peterson
Rating:
A second stimulus won't fly with some Americans, despite the fact that Warren Buffett, Joseph Stiglitz and other experts have called for one.
That's why, even though the White House will likely push something that walks and talks like a stimulus, no one will call it the "S" word.
Lawmakers are set to extend some stimulus measures and create some new ones as well, CNNMoney.com reports. Here's a quick rundown:
Unemployment. One move being considered is extending unemployment benefits after they run out.
An estimated 1.3 million unemployed workers will have exhausted their benefits by the end of the year, according to CNNMoney. One proposal would extend the benefits by as much as 14 weeks, and up to 20 weeks in states with high unemployment.
Health care. Another idea in discussion is extending the Cobra health insurance program for unemployed workers. The current stimulus allows for the government to pay 65% of the Cobra premium for nine months after a worker becomes unemployed.
Seniors. Social Security benefits will see no cost-of-living increase next year because of a lack of inflation, CNNMoney reports. The government is considering making up for that by sending a $250 payment to seniors, veterans and the disabled.
Homebuying. The $8,000 tax credit for first-time homebuyers expires Nov. 30, and some people (namely, ahem, real estate agents) have called for an extension. There is talk of pushing the deadline into next June.
New hires. Finally, some have suggested giving companies a tax break for hiring new workers. But would it truly spur job creation, or just unfairly reward companies that were already planning to hire?
At any rate, it doesn't sound like this one has too much traction in Congress.
So what's the cost of all this? Tens of billions, CNNMoney.com reports.
The White House is smart not to promote this as another stimulus. The "S" word will drive some taxpayers batty, but each of these proposals don't sound that outrageous.
