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US Senate OKs Procedural Vote On Jobless-Benefits Extension

By Corey Boles, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The U.S. Senate took another important procedural vote on a bill extending federal jobless benefits, a home buyers' tax credit and the ability of large companies to write off losses against profits made during good years.

With the vote, lawmakers inched one step closer to completing more than a one month-long debate on how the federal government would act to expand benefits to the long-term unemployed.

The debate in the Senate could be concluded by Wednesday, which would then send the unemployment insurance benefit back to the House for lawmakers' consideration there.

Despite the progress in the Senate, Republican lawmakers cried foul about a move by the Democratic majority to cut off debate and not allow votes on amendments to the legislation.

Republicans had wanted to pay for the measure with unused economic funds from the $878 billion stimulus plan enacted in February, rather than by the continuation of a payroll tax on employers that was set to expire at the end of the year.

They also wanted to include language requiring the Treasury to wind down its financial rescue plan by the end of the year.

It was this latter vote that Republicans say the Democratic leadership wouldn't allow them to have because of a fear that such a vote against the unpopular Troubled Asset Relief Plan would be successful.

Treasury Secretary Timothy Geithner has said the administration is opposed to a requirement ending the TARP by the end of the year.

The national unemployment rate reached 9.8% in September. Many economists expect it to rise further when the Department of Labor reports October numbers Friday.

The Senate bill would offer an additional 20 weeks benefits to people living in states with jobless rates higher than 8.5% over the last three months. Unemployed people in all 50 states would receive an additional 14 weeks coverage.

The Home buyers' credit would continue an $8,000 tax break currently available to first time buyers. It would create a $6,500 credit for people who already own a residence seeking to buy another and move.

The business tax break would allow all companies to write off losses incurred one of the last two years against profits made in earlier years. That measure had been previously limited to smaller firms.

-By Corey Boles, Dow Jones Newswires; 202-862-6601; corey.boles@dowjones.com

  (END) Dow Jones Newswires
  11-02-091756ET
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