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Both Democratic presidential candidates have renewed their calls for a benefits extension as part of a "second stimulus".
A17 Congress Off to Rocky Start Congress convened under Republican control and the Senate quickly adopted an unemployment benefits extension after a debate that exposed partisan divisions.
A benefits extension is almost certain to pass next month, now that President Bush and Congressional Republicans have agreed to the idea.
Advocates of a benefits extension note that long-term joblessness is a bigger problem now than it was at the start of past recessions.
"Now Arizona decided to kill the benefits extension from the federal government because some legislator decided we're just sitting around on our butts waiting for a check".
Democrats must now defeat Republican attempts to lace the benefits extension with things like protecting the rich from the estate tax.
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However, one concern with unemployment benefits extensions is that they may generate a moral hazard and cause people to search less and to lower their acceptance of jobs.
We took the politics out of the next 13 months of unemployment benefits extensions for those who haven't exhausted benefits, but when millions more do exhaust benefits in 2011, well, honestly, tough luck.
Many of the 9.1% officially unemployed have no hope of finding work, and do little more than hunt video game gold and draft emails to Congress demanding benefits extensions.
The fate of the benefit extension now rests with the Republican-controlled House.
The unemployment benefit extension would cost $8.5 billion this year, while the business tax cuts would amount to $43 billion this year.
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