Unemployment Extension 2013

December 9th, 20122 Comments »
Unemployment Extension 2013

(Photo credit: Sean MacEntee)

Unemployment Extension 2013

Will there be an unemployment extension in 2013?

That’s the question that many Nevadan’s, and the unemployed in other hard hit states, are asking.

As it stands now, the last week payable for for any type of federal tiered extensions is 12-29-12.

Even if you are in midst of a tier, it ends on the week of 12-29-12.

Congress would have to approve any type of extension.

Right now, they are fighting it out.

There is a “fiscal cliff” stalemate going on with Democrats and Republican who, at this point, are unable to agree on anything.

And unemployment benefits are part of the fiscal cliff.

John Boehner, House of Representatives Speaker, has said Obama’s plan to raise taxes on the rich was the wrong approach saying,

There is a stalemate. Let’s not kid ourselves. Right now we are almost nowhere.

What does that mean about a potential unemployment extension?

The unemployment extension will be tucked into another change; like payroll taxes or tucked into the healthcare changes.

It’s all big business with, what is supposed to be, give and take on all sides.

Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts which will result in a 2% tax increase for workers, the ending of certain tax breaks for businesses, shifts in the alternative minimum tax, and the commencement of taxes related to Obamacare.  Also, the spending cuts that were agreed upon as part of the debt ceiling deal of 2011 will go into effect. Barron’s says that over 1,000 government programs – including the defense budget and Medicare are in line for “deep, automatic cuts”.

A best case scenario is that it is all ironed our before the end of the year; worst case scenario is that both sides cannot come to terms, which may happen, and emergency stop gap measures will be temporarily be in place.

It seems likely that an extension of federal benefits will pass.  There are still far too many out of work and study after study has shown that if unemployment is not approved for 2013, many families will be plunged into poverty.

The Economic Policy Institute had this to say

Federally funded extended unemployment insurance (UI) benefits are set to expire at the end of this year. These benefits serve two very useful public purposes. Most obviously, they provide a lifeline to the long-term unemployed and their families during the deepest and longest economic downturn since the 1930s.Less understood but equally crucial, the UI benefit extensions boost spending in the economy and thereby create jobs. We find that continuing the extensions through 2013 would generate spending that would support 400,000 jobs. If this program is discontinued, the economy will lose these jobs.

With the economy still in shambles, it is likely that there will have to be some type of extension.

The real issue is the State Extended Benefits (SEB).  SEB  provides up to 20 weeks of unemployment after federal extensions have run out.  In Nevada, for example, which has been very hard hit  by the economy and still suffers from double digit unemployment, SEB ended in July of 2012, yet New York, which has single digit unemployment is eligible for SEB. Go Figure!

The formula used to calculate SEB measures unemployment uses the 3 month unemployment rate and compares it to the three prior years of the same months. If there is a 10% improvement, the state is cut off.

Back in June, Nevada’s current three-month average unemployment rate was 11.8 percent, and in order to meet the threshold for SEB, Nevada’s three-month average rate would have needed to be 12.0 percent or higher.

Obviously, the system needs to be overhauled, however that is unlikely to happen anytime soon.

Unemployment Extension 2013
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About Chellie Cervone

A Las Vegas "native" by way of New York, I'm a professional blogger who favors all things Las Vegas and offers a unique, witty and sometimes controversial perspective. You can count on me to tell it like it is. Please visit my other sites Las Vegas World News and Celebrity Feast Connect with me on Google+ Chellies World on Google+

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2 Comments

  1. Mr.Leslie T. says:

    I am 56 years old, have worked sine I was 16, paying taxes the whole time. I lose my job as an auto body repar tech due to a very mild winter ( which means few acidents and work slows ) Now, being on u.e. isn’t bad enough because I lose my home i have worked all my life for. now I will lose my apt. and become homeless if there are no extensions or, I don’t find a job. I hear of all these people coming to this country and getting this, that and the the other thing no problem. Meanwhile the people ( I probably voted for) are squeezing my balls over things they knew about for a long time and now they can’t help? These idiots gonna figure out how to control crime when we all “snap” and have to steal food to survive? Don’t laugh, it happened right in front of me today while food shopping in Brockton Ma. These a- holes ought to have to WORK for a living because everyone of them I see was born with a silver spoon.

    • Marie Gibson says:

      Mr. T.
      I could not agree with you more! Same story with me..I have worked and paid taxes for 30 years now and lost my job. Now, I need some help and its being “played with” by a Congress that DOES hand out money, housing assistance, food stamps, free medical/dental and business start-up cash to TOTAL STRANGERS to our country…..FOREIGNERS….these people have never paid into our tax system nor been a part of our GREAT USA at all!!! If they need to make DEEP CUTS to programs……..CUT the foreigners for a while and keep UI Extensions and Medicare and any other program that actually helps our CITIZENS!!! Also, do they remember that “anyone who is eligible to collect UI, has lost their job DUE TO NO FAULT OF THEIR OWN? These arent the slackers and free-loaders etc…….these are the truly hard-working public who has got kicked in the teeth with this awful economy!! It is just so unfair!!! HELP THE GOOD CITIZENS!!!!


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Chellie is a casino industry veteran with over 20 years of Casino Management experience and is affectionately known as the “Slots Queen”. Slots are definitely her passion and she keeps up-to-date on the very latest in casino technology. A born leader, Chellie has helped pave the way for many to start successful careers in the casino gaming industry. She enjoys and excels at optimizing and managing casino slot floors. Her favorite phrase is, “remember the Golden Rule”. Her hobbies are varied and include writing, computers, technology, Las Vegas and all things electronic; especially smart phones. Please visit the Services section to inquire about Consulting Services. Advertising opportunities are also available. Chellie can be contacted here.

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