Cardin pushes more unemployment benefits 
Posted: 9:02 pm Sun, October 25, 2009
By Danielle Ulman
Daily Record Business Writer
Unemployment insurance benefits will run out for an estimated 1.9 million Americans in December, and U.S. Sen. Benjamin Cardin is urging his colleagues to consider an extension.
“Looking at Maryland on a county-by-county basis, we have several counties that are above that 8.5 percent trigger,” he said. “If you live in those counties, why would you be denied those benefits when you’ve already reached that rate?”
Maryland has six jurisdictions that exceed the 8.5 percent unemployment rate: Baltimore City (10.6 percent); Caroline County (8.8 percent); Cecil County (8.6 percent); Dorchester County (10.9 percent); Somerset County (9.5 percent) and Washington County (9.4 percent).
Under the proposed Senate bill, states at or above the 8.5 percent threshold would see unemployment insurance benefits increase by 20 weeks, and states that fall below that mark would pass along another 14 weeks of benefits to the jobless. The House legislation would extend benefits by 13 weeks for those in states with high rates of unemployment.
Congress would pay for the extensions through a federal tax on employers, not through state unemployment insurance trust funds, many of which are struggling to stay in the black. The federal tax, which is usually 0.8 percent of the first $7,000 of an employee’s wages, would have a surtax of 0.2 percent through June 2011.
Cardin will try to garner support for the bill with a news conference Monday at the Northwest One-Stop Career Center in Baltimore.
Business owners might not get on board, though. While many Maryland residents are suffering in this dismal job market, businesses have taken a hit in the recession. The money in state’s unemployment insurance trust fund dipped so low that business owners will be slapped with the state’s highest payroll taxes next year in order to keep it solvent.
Ellen Valentino, Maryland state director of the National Federal of Independent Businesses, said businesses are under an extraordinary amount of pressure and adding to their costs will not help.
“One of the things that is very concerning to Maryland businesses is that the unemployment insurance tax is scheduled to go up significantly in January, so to look to the [Federal Unemployment Tax Act] surtax at this point would be a difficult and potentially wrong way to go,” she said. “The small business community is the engine that needs to run to get not just Maryland’s economy but the national economy up and running and to continue to look to payroll taxes is likely the wrong direction.”
But Cardin said Congress and the federal government have pumped roughly $1 trillion into the economy to help business owners, including federal tax cuts.
The extension of unemployment benefits has two purposes, according to Cardin.
“One is to help the individual, and our best calculation is that 20 weeks from now the economy should be creating jobs,” he said. “Secondly, it pumps money into the economy. These individuals need the money; they’re not going to save it.”
Valentino said she understood Cardin’s view, but disagreed.
“That’s one perspective,” she said. “The other perspective is that very little matters if you don’t have jobs. The focus needs to be on those job creators.”
Senate Democrats are trying to negotiate with Republicans to get the bill to a vote on the floor. Cardin said Democrats will force the vote through a cloture vote Tuesday if a compromise cannot be worked out.

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Comments
The sad part about all this is that the numbers being reported are not accurate. Maryland, because of it’s proximity to Washington DC has a lower rate than some others because of the percentage of Marylanders who work for the Government. This doesn’t account for the rest of us who cannot qualify for government employment or who live much further away from the DC Metro area.
In addition, many have stopped reporting and filing every week because they think that becausethe extension benefits have run out for them, they no longer have to apply. This is how the governmentt tracks the percentage rate so I urge everyone to continue filling claims to keep these numbers more accurately represented. There are also many who have stopped looking, and many who have lost everything and no longer have the ability to report, or even job hunt when they ‘ve lost their homes, their cars, their life.
Washington better wake up…QUICKLY!
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