Webb: International Paper Closing Underscores Importance Of Successful 14-Week Extension Of Unemployment Benefits

Measure Includes Tax Credits for First-time Homebuyers, Small Businesses

November 4, 2009 -- WASHINGTON, DC – Senator Jim Webb (D-VA) today praised the Senate passage of legislation to extend unemployment insurance for up to 14 additional weeks for jobless workers in all 50 states. A cosponsor of the legislation, Webb has repeatedly called on his colleagues to swiftly pass the much-needed extension that would provide relief for the nearly 2 million Americans, including 13,000 Virginians, who will exhaust their unemployment benefits by the end of the year.

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The compromise legislation introduced by Senator Webb and his Senate colleagues sought to address the inequities in a House proposal passed last month that only extended benefits for states with jobless rates above 8.5%. Though Virginia has an average of 6.6% unemployment, communities in Southside and Southwest Virginia on average has rates between 9-15%. The city of Martinsville faces 20.8% unemployment.

“With the announcement last month that International Paper will shutter its plant in Franklin, we’ve seen fresh evidence that Virginia faces the same economic challenges as other large industrial states,” said Senator Webb, a cosponsor of the legislation. “In my view, this extension is absolutely necessary to the well-being of our workers.”

“I urge the House to move swiftly in adopting this compromise, as many Americans are only weeks away from exhausting their current benefits,” continued Webb.

The legislation includes provisions to invigorate the housing market and alleviate losses incurred by businesses due to difficult economic times. The extension of the homebuyer tax credit, originally a part of the Housing and Economic Recovery Act of 2008, will provide an up to $8,000 refundable credit for taxpayers with incomes of up to $75,000 for individuals and $150,000 for married couples.

The legislation expands the net operating loss provision, allowing businesses to apply 2008 and 2009 losses against income earned in any of the past five years. This measure will help businesses facing a difficult economy and tight credit markets.

According to the Bureau of Labor Statistics, an estimated 270,000 workers in Virginia are unemployed and, if the legislation had not passed, almost 13,000 Virginians’ benefits would be set to expire in December 2009.

To find out more information on how to access unemployment benefits in Virginia, please go to: http://www.vec.virginia.gov/vecportal/unins/insunemp.cfm
For a more detailed description of the Worker, Homeownership, and Business Assistance Act of 2009 (S.A. 2712), please go to: http://dpc.senate.gov/dpcdoc.cfm?doc_name=lb-111-1-140

To download Senator Webb’s map of unemployment statistics by region, visit: www.webb.senate.gov/pdf/VaUnemployment2009.pdf

Source: Senator Jim Webb