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Jamie Dupree's Washington Insider

Posted: 11:42 p.m. Thursday, May 27, 2010

The Deficit Rebellion 

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By Jamie Dupree

Democratic leaders probably didn't think they were going to be in a jam on extending jobless benefits this week, but a mini rebellion over the deficit in their party may mean some will lose their benefits beginning next week.

Twice already this year, Democrats in Congress rolled the dice and won political victories as Republicans held up bills designed to extend expiring jobless benefits and more, citing concerns over the expanding deficit.  

But the third time was not a charm, as the GOP didn't even get a chance to oppose the latest bill, because Democrats couldn't put together a majority to get it through the House.

At first, the bill was close to $200 billion in all, because the measure included not only jobless and COBRA health benefits, but a laundry list of popular tax breaks, some tax increases, and an expensive change in Medicare payment rules for doctors. 

All of it would have raised the deficit by about $130 billion.  The message from Blue Dog Democrats - and others in the party - was, 'no way'.

Short on votes, Democrats hacked the cost of that bill by about $50 billion.  But that still didn't bring in needed votes on Thursday afternoon, as lawmakers said voting to enlarge the deficit right now was not a politically sane move.

While Democrats were looking for votes, the Senate last night finished up its work and basically went home until June 7. 

So it could mean that no matter what gets approved (or defeated) by the House today, jobless and COBRA health benefits will begin running out next week while the Congress is on vacation.

But this time, the Democrats won't have the Republicans to blame.

As the clock edges towards midnight as I write this, the game plan for Friday seems to be splitting this plan into two pieces for House votes.

The first piece would include the unemployment benefits extension, along with a summer jobs program and the "tax extenders" - the popular business and personal tax breaks that expired at the end of last year.

Supposedly, most if not all of this will be paid for with tax increases and loophole closings that are in the bill.

Part two will be a 19-month "Doc Fix" on Medicare payments for doctors.

Tossed out of the bill is the COBRA health benefits extension and an increase in Medicaid help for the states, what's known as FMAP.  Those will be addressed by the House - and the Senate - next month

And the Democrats can't blame the Republicans for such delays this time around.

 
 

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