Jobs bill picking up bipartisan support in Senate, would continue anti-terror Patriot Act

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Jobs bill picking up bipartisan support in Senate

WASHINGTON — A bill to encourage hiring and help the unemployed is gaining support among both Republicans and Democrats after sponsors added an extension of the anti-terror Patriot Act and a break for doctors receiving Medicare payments.

The bill brought forth Thursday would extend unemployment payments for those whose benefits have run out as well as subsidies to help the jobless pay for health insurance.

It also includes a tax break for companies that hire unemployed workers, money for highway construction, relief for private pensions and a one-year extension of the Patriot Act, which liberal lawmakers have opposed as failing to protect Americans’ from unwarranted government surveillance and seizures of property.

While the centerpiece of the measure is a $13 billion payroll tax credit for companies that hire unemployed workers, the bulk of it addresses leftover business the Senate couldn’t get to last year when it was preoccupied by the health care debate.

Doctors would get a seven-month reprieve from a 21 percent cut in Medicare fees required under a 1990s budget law. The law governing the satellite television industry would be updated and farmers would get $1.5 billion for agriculture disaster assistance.

About $31 billion in popular tax breaks that expired at the end of 2009, including an income tax deduction for sales and property taxes and a business tax credit for research and development, would be extended through 2010.

In all, the bill would cost about $104 billion and would be partially offset by $38 billion in tax increases and $8 billion in spending cuts.

The Obama administration has been pushing hard for a stronger congressional response to the country’s chronically high unemployment rate, which now stands at 9.7 percent of the labor force. Obama has served notice on Republican opponents that he’s willing to accept some of their positions and priorities as long as doing so doesn’t mean he has to give up his.

The White House offered praised for the bill that includes many of President Barack Obama’s job proposals. “The president is gratified to see the Senate moving forward in a bipartisan manner on steps to help put Americans back to work,” said a statement from press secretary Robert Gibbs.

Senate Majority Leader Harry, D-Nev., had wanted to vote on the bill before Congress takes a break for President’s Day next week. But two major snowstorms that have effectively shut down the federal government for much of the week make that unlikely.

The top two senators on the Finance Committee, who released the bill, said in a joint statement that it should be acted on “expeditiously,” but should not be rushed.

“Any efforts to needlessly delay Senate completion of consideration of this package through partisan means will undermine our goal of timely action in the current economic climate,” said the joint statement by Democrat Max Baucus of Montana and Republican Chuck Grassley of Iowa. “Action on the expired provisions is long overdue. Timely action on incentives for economic activity and job creation also is needed.”

Baucus is chairman of the Senate Finance Committee and Grassley is the top Republican on the panel.

Among the bill’s provisions:

— Businesses would be exempt from paying a 6.2 percent Social Security tax on the wages of new employees, as long as the workers had been unemployed at least 60 days. The tax break would run through the end of the year. Companies could get an additional $1,000 on their 2011 tax returns if they keep the new workers for at least a full year.

— Enhanced unemployment payments would be extended through May 31 for workers who have been unemployed for long periods of time. Cost: $22 billion.

— Subsidies to help the jobless continue paying premiums for health insurance would be extended through May 31. Cost: $3 billion.

— Funding for the federal Highway Trust Fund would be extended through the end of the year. Cost: $19.5 billion.

— Temporary relief would be provided to single employer and multi-employer pension plans that suffered significant losses from the steep market decline in 2008. Cost: $6 billion.

— A 21 percent cut in Medicare payments to doctors that would otherwise go into effect March 1 would be delayed. The cuts are required under a 1990s budget law meant to keep Medicare costs in check through automatic trims. The legislation provides another temporary patch, through Sept. 30, when the federal budget year ends. The cost, which includes extensions of several other Medicare provisions: $10 billion.

— The provisions of the USA Patriot Act slated to expire Feb. 28 would be extended by a year. The act, which is the nation’s primary anti-terrorism tool, authorizes law enforcement and intelligence agencies to conduct court-ordered surveillance and seizure of records and property in counterterrorism operations.

Associated Press writers Andrew Taylor, Larry Margasak and Ricardo Alonso-Zaldivar contributed to this report.