Boosting the economy

One of the most successful programs we've passed in Congress is the tax credit for first time homebuyers. It's been good for the economy as it zeroed in on the housing sector where the country's economical problems first began.

This credit has been put to good use in Nebraska. We rank 7th in per capita tax credit with a total of $79.9 million in total dollars claimed. That means more than 10,000 Nebraska homebuyers claimed the credit.

Realtors and Homebuilders across Nebraska have told me that this credit is helping create jobs and stimulate economic activity while helping the housing market. Now is not the right time for it to expire.

Tax Credit Extension Necessary

That's why a seven month extension has my full support. This will not only extend the popular program through the end of June 2010, but will expand it to help more Nebraskans and provide an even bigger boost to the housing market and all the economic activity a home sale generates.

It will increase the income thresholds to qualify for the credit, and also offer a $6,500 credit to people who've owned a home before in an effort to reach a broader cross-section of the housing market.

The bill also includes a provision that will help struggling businesses recoup taxes from prior years, by extending the carry-back period for operating losses. This will free up needed capital for struggling businesses and preserve jobs.

Won't Increase the Deficit

For all of us deficit hawks, the bill has some really good news. It does not add one bit to the deficit. It is fully paid-for by delaying a tax break for multinational corporations that hasn't even gone into effect yet.

The homebuyers' tax credit is included in legislation that extends emergency unemployment compensation benefits.

Extends Unemployment Compensation

This legislation gives a critical lifeline to individuals who are struggling to find work by providing an additional 14 weeks of emergency unemployment compensation benefits in all states. And an additional 6 weeks of unemployment benefits would be triggered in states with an unemployment rate over 8.5%. Under current law, emergency unemployment compensation is provided to all states for 20 weeks, with an additional 13 weeks of benefits triggered in states with unemployment over 6%

The bill also does several other things including modifying the American Recovery and Reinvestment Act, better known as the stimulus plan, so that the additional $25 in unemployment assistance provided through this does not apply when calculating for the Supplemental Nutrition Assistance Program (SNAP)--formerly known as food stamps.

It also updates an Unemployment Insurance Modernization provision in the stimulus plan by including sexual assault and domestic violence as a "compelling family reason" for benefits.

It further specifies that railroad workers facing expiring unemployment benefits are eligible for additional weeks.

Helping Nebraska's Unemployed

Nebraska has more than 13,000 individuals who are currently receiving emergency unemployment compensation benefits and would have the potential to benefit from these extended benefits.

The economy appears to be rebounding slowly but there is still work to be done. Extending unemployment benefits and continuing the homebuyers' tax credit through the middle of next year will help assure that the recovery continues.