Senate Democrats dismantling aid package due to deficit
The Senate will vote Wednesday on an aid package for the unemployed and the state governments. According the the Budget Office, without changes, the bill would have increased the deficit by $80 billion. Democrats in the Senate are trying to trim the bill to reduce its costs and increase the chances of its passage. Changes to the bill include taking $25 out of weekly unemployment checks. Some advocates are questioning the cuts, saying that the majority is coming out of unemployment benefits, rather than things like tax cuts for businesses and individuals. The President sent a letter to Congress on Saturday asking them to pass the bill to stave off layoffs at the state and local levels. The House approved a tax cut package for small business on Tuesday. The bill is not expected to raise the deficit. Some Senators say that they are not happy with taxes on hedge fund managers, and others say that they are worried about the impact of the bill on some small businesses.
See "Senate Democrats dismantling aid package due to deficit", Lori Montgomery, The Washington Post, June 15, 2010