Congress Extends Unemployment Insurance for Another Thirteen MonthsPosted January 10th, 2011
The Tax Relief Act will extend unemployment benefits for about 2 million unemployed persons in the month of December and a total of 7 million over the next year. Federal unemployment benefits amount to only about $260 per week, but it is money that families need for basic necessities—money that flows right back out into the economy. If the extension had not passed, the average affected household’s income would have dropped by one-third. The corresponding drop in spending would have further increased job losses, further delaying the already slow recovery. Read this complete analysis of the impact at AdvisorFX (sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber).
For previous coverage of President Obama’s tax agreement in Advisor’s Journal, see Obama Tax Agreement Faces Stiff Resistance in Congress (CC 10-112), Obama Tax Agreement Passed by House (CC 10-117) and Obama’s Social Security Tax Holiday: Penny Wise and Pound Foolish? (CC 10-119).