Jobless benefits bill carries several obstacles

INDIANAPOLIS (WISH) - On Monday, Indiana Senator Richard Lugar told 24-Hour News 8 there are two reasons Republicans are blocking the bill that would extend unemployment benefits.

One, it increases the deficit. The other reason, he says, is, "It's been packaged together with a number of items this is not standing alone."

24-Hour News 8 has been investigating what else is in the unemployment benefits bill.

The bill is HR 4213, officially titled, " The promoting American Jobs and Closing Tax Loopholes Act of 2010 ".

There's plenty there beyond extending unemployment benefits. You only need look at it for a moment to realize it includes a lot more than extending unemployment benefits.

"It's pages and pages of extensions of other benefits that have been provided," said Rachel Smith an assistant professor of finance at the University of Indianapolis, who has been following the battle over the unemployment benefits bill. "Infrastructure incentives, we've got energy incentives, alternative motor vehicle credit for new hybrid vehicles."

Dr. Smith went through a copy of the bill with 24-Hour News 8.

"We've got low income housing credits, business tax relief, emergency agricultural disaster assistance, extensions of build America bonds,” listed Dr. Smith.

The bill is packed with items Democrats say will help the economy and Republicans say don't belong in the bill.

"It is something that could be beneficial to either individuals or businesses but it's kind of being sold and packaged as just for unemployment," said Dr. Smith.

In addition, there is concern over funding the bill, which would add an estimated $30 billion to the deficit.

There is also concern that long-term unemployment benefits may keep some people from looking for work. But Dr. Smith says getting benefits to the unemployed makes economic sense in these tough times.

"Providing those unemployment benefits does allow consumers to go out and spend, which boosts the economy. It does also allow them to maintain their homes and not go into foreclosure, provides them with some consumer confidence,” said Dr. Smith.

At the end of June, Senator Stabenow of Michigan introduced a bill that strips out all those extras and only extends unemployment benefits.

24-Hour News 8 called Senator Lugar's office to see if he supported that bill.

A spokesman said Lugar would, only if it won't add to the deficit and is fully funded and right now, the spokesman said it's clear that it provides the funding.