McMahon Votes To Extend Three Critical Benefits For His Constituents

Press Release

Today, Rep. Michael E. McMahon voted to ease the burden of his constituents and stimulate the local economy by extending unemployment benefits, the homebuyers' tax credit, and tax relief for military families and businesses. The Emergency Unemployment Compensation Extension Act will provide immediate assistance, extending relief to millions of workers, families, and businesses nationwide.

"I am committed to providing immediate relief to my constituents who have been struggling to stay afloat," said Rep. McMahon. "This money will allow hard-hit families to buy basic necessities, thus putting money right back into our local economy. If the success of the Cash for Clunkers program and Ford's subsequent reporting of profitability has taught us anything, it is that when you provide people with incentives, they will spend money and get our economy moving again. That is exactly what this bill will do."

The extension is fully paid for and will provide immediate, effective stimulus to the local economy. The Congressional Budget Office has cited unemployment benefits as one of the most cost-effective forms of economic stimulus, and every dollar spent on unemployment benefits generates $1.63 in new demand, according to Moody's chief economist Mark Zandi.

The legislation will provide families in all states with 14 weeks of additional benefits, and six more weeks to the 27 states with the highest unemployment rates -- where it is most difficult for workers to find employment. Workers in these high unemployment states who have exhausted or will soon exhaust their benefits will be eligible for a total of 20 additional weeks of emergency unemployment compensation.

The bill includes an extension of the $8,000 first-time homebuyer tax credit through April 30, 2010 and provides a $6,500 credit to new purchasers who have lived in their current residence for five years or more. It also helps military families struggling to make mortgage payments by making those payments tax-exempt.

To breathe life back into American businesses suffering from huge losses, this bill allows U.S. companies to carry back losses incurred in either 2008 or 2009 against income earned in any of the five prior years.

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