So the November 2009 unemployment extension that has been groveled over since September was FINALLY unanimously passed today after passing the Senate with a 98 to zilch vote yesterday.  Today it was voted on in the House and was again voted and passed through with a 403 to 12 vote.  The bill goes to the White House and will be signed by Obama.  Also in the bill was a homebuyer tax credit for $8,000 was extended through April of 2010. 

Who is eligible for the new unemployment extension?  People who have currently exhausted their benefits and will exhaust their FEDERAL unemployment benefits by the END of the year will be able to collect more benefits in the amount of 14 additional weeks.  Also, states with exceptionally high unemployment rates of 8.5% or higher will be able to collect an additional 6 weeks of unemployment for a total of 20 additional weeks of unemployment.
 
The bill that has been groveled over since September was due to arguments of where the money for unemployment should be collected from.  Unfortunately, due to the delays in the Senate, 200,000 people have been without jobs and unemployment and have had to struggle while the Senate worked out the amendments.  So how does the extension affect you as a tax payer?  Employers are going to be taxed through June 30, 2011 for the newest unemployment extension. 

The unemployment rate is at a whopping 9.8 percent and there’s no hope of it dropping anytime soon.  Since the economic situation looks quite dim for at least a few years (unemployment rate typically drops 1% per year during times of economic growth), my concern is how the people who’s benefits run out in January 2010 will be affected.  Isn’t unfair to those who run out of benefits in January or February of 2010, where do they fit into this equation and how come only people who exhaust their benefits at year end get the extension?  Will people who exhaust their benefits AFTER year-end get an extension as well?