Senators Introduce Legislation to Extend Unemployment Insurance Benefits, Cut Taxes for Businesses that Put People Back to Work

Press Release

U.S. Senators Debbie Stabenow (D-MI), Charles Schumer (D-NY), Dick Durbin (D-IL), Carl Levin (D-MI), Bob Casey (D-PA), Chris Dodd (D-CT), Sherrod Brown (D-OH), Jack Reed (D-RI), and Sheldon Whitehouse (D-RI) today introduced S. 3706 the Americans Want to Work Act. This legislation will provide emergency assistance for struggling families looking for work by creating an additional tier of benefits for those who have exhausted their unemployment insurance benefits and cut taxes for businesses that hire new workers who have been looking for work the longest.

Senator Stabenow said: "Across my home state of Michigan, more than 35,000 people who have lost their jobs have also exhausted their unemployment insurance benefits. I know that these men and women want to work and have been trying their best to find jobs in this difficult economy. Our legislation cuts taxes for businesses that hire new workers who have been looking for work the longest. It also provides 20 more weeks of unemployment insurance to people in states with the highest number of people out of work."

Senator Schumer said: "For a lot of New Yorkers, their unemployment insurance has ended before their job search has. This means that people who are out of work through no fault of their own are hitting a wall. This targeted, limited proposal will extend an additional lifeline."

Senator Durbin said: "The extension of unemployment benefits literally means bread on the table and a roof over the heads of millions of families around the country who have fallen victim to this recession. In Illinois it means a life- line to the nearly 40,000 workers who have exhausted their unemployment benefits. As we work our way out of this recession, we ought to give small businesses incentives to hire and workers more time to find work. I'm happy to join with my colleagues and hope we'll be able to give millions of families the help they desperately need."

Senator Levin said: "This legislation will help get those who most need work into jobs, and will help businesses expand their payrolls. The blight of unemployment is still extensive in Michigan and around the country, and until businesses are hiring in greater numbers we must do all we can to support those who are unemployed through no fault of their own. That is why our legislation would also provide an extra 20 weeks of emergency unemployment compensation. For families across Michigan and other hard hit states, this additional benefit is a lifeline keeping food on the table."

Senator Casey said: "Because of the global recession, we have too few jobs and too many people out of work for so long that they have exhausted their unemployment insurance. This bill tackles both of these problems by expanding tax cuts for businesses that create jobs and providing additional assistance for the 45,000 Pennsylvanians who have already lost benefits this year."

Senator Dodd said: "Our country continues to fight its way out of recession, and despite the progress we have made, many families in Connecticut and across the country are struggling to find jobs at the same time that their unemployment insurance is running out. While we continue to work to get our economy back on track, we must also support American workers who need their unemployment insurance to pay rent and mortgage bills, put food on their tables, and care for their children. We must act now to pass this bill that will create jobs and provide security for those who have been hit hardest by this recession."

Senator Brown said: "These tough economic times have made it difficult for thousands of out-of- work Ohioans to pay their mortgages and put food on the table for their families. This critical bill will extend vital unemployment insurance to those individuals in the hardest-hit states who are still struggling to find work after exhausting their original benefits. It also provides incentives for businesses in Ohio and across the country to put these workers back in good-paying jobs."

Senator Whitehouse said: "This recession has left tens of thousands of Rhode Islanders out of work, and there simply aren't enough jobs to go around. At a recent visit to a local employment center in Pawtucket, one Rhode Islander told me that she had exhausted her 99 weeks of Unemployment Insurance, but still had not found work. Extending unemployment benefits would ensure that Rhode Islanders looking for work can pay the bills and keep food on the table, and provide a boost to our local economy."

The Americans Want to Work Act will provide 20 additional weeks of unemployment insurance for individuals in states with an unemployment rate of 7.5% or higher. This tier will benefit people who have exhausted all of their benefits. In order to receive this tier, individuals would still need to meet regular unemployment insurance law requirements.

The Americans Want to Work Act also extends through 2011 the successful HIRE Act tax credit, signed into law earlier this year, to encourage businesses to hire workers. The HIRE Act cuts payroll taxes for businesses that hire workers who have been out of work for longer than 60 days and also gives them a $1,000 general business tax credit for each worker employed for at least a year. The bill also doubles the tax credit to $2,000 if businesses hire workers who have totally exhausted their unemployment benefits. Recent reports from the Department of Treasury show that from February to June of this year, businesses hired approximately 5.6 million new workers who had been out of work for eight weeks or more.