Maine news, sports, weather | Kennebec Journal, Augusta, Maine

MIKE TIPPING: Jobless benefits extension not OK, but tax cuts for the wealthy are?

This week, we celebrate Thanksgiving. Already, malls and outlet stores in Maine have begun decorating for Christmas; an early-warning system for shoppers like me who have a tendency to wait until the last minute.

The end-of-year holidays are a time to be grateful for what we have and to recognize and assist those who have less.

From Jesus’ humble beginnings in a manger to the struggles and celebration of the harvest at Plymouth Colony and from Charles Dickens’ “A Christmas Carol” to Thanksgiving dinners at soup kitchens and bell-ringing Salvation Army Santas, the holidays have always been a time for celebrating community and addressing poverty and disparity.

This is probably a good time to mention, then, that for thousands of Mainers the next few weeks will be incredibly difficult.

Federal jobless benefits for those who have been laid off during the recession are about to run out. According to the Maine Department of Labor, 21,500 people in the state will be affected over the next few months, ending for the majority of out-of-work by Christmas.

Things have been tough since the recession began, but this is the first time that so many will face so much financial pain with so little help from the government. Suffice to say that for many Maine families, there won’t be much under the tree.

On Thursday, a bill in the House that would have extended jobless benefits for another three months was blocked by congressional Republicans, who demanded spending cuts on other government programs to offset the extension.

Both of Maine’s representatives voted for the bill. In a statement, Mike Michaud expressed disappointment in the loss of these “much-needed benefits that are helping those who lost their job through no fault of their own make ends meet while they look for work.”

The Senate doesn’t yet have a vote scheduled, but Maine Sens. Olympia Snowe and Susan Collins seem open to the possibility of voting in favor of an extension, as they have in the past. They both, however, also raised the same kinds of objections as other Republicans about where the money will come from.

Collins said her vote will depend on “how many people will be affected in Maine and nationwide and how it is paid for.”

That seems like a reasonable position, until you consider that their concerns about deficit spending disappear when it comes to extending the Bush tax cuts for the wealthy, another issue that Congress will address in the next few weeks.

Snowe and Collins both have expressed support for the GOP-backed handout to those making more than $250,000 a year, which would increase the deficit by more than $700 billion. Extending jobless benefits for every unemployed person in the country would cost $12.5 billion.

That’s like denying Tiny Tim $1.75, while at the same time handing Ebeneezer Scrooge a 100-dollar bill.

Some Republicans, Snowe and Collins included, say they support the tax cuts for the rich because they believe it will help small business owners create jobs. That argument doesn’t hold water.

The nonpartisan Congressional Joint Committee on Taxation estimates that only 3 percent of taxpayers who own businesses would benefit from an extension of the reductions in the top two income tax rates. To qualify, a business owner would have clear more than $250,000 a year in profit, above and beyond all business expenses and reinvestment.

If you’re making that much in profit, congratulations, you’re no longer a small business. Also, please consider using a Maine-based boat builder when you buy your next yacht.

On the other hand, extending unemployment programs through the holidays would mean a real and immediate boost to small businesses throughout Maine.

The unemployed in our state will use that money to buy basic necessities and, one assumes, Christmas gifts. The funds will be injected into our local economy, help real small business owners make ends meet over the holidays and maybe even allow them to hire back some of those who are out of work.

Let’s use the opportunity of the holiday season to get our priorities back in line. Let’s stop the gravy train for the rich and fill a few gravy boats for the poor. Let’s make investments in the people who need it the most and in the places where it will do the most good. Let’s begin the new year with a clear conscience and hope for our shared future.



Mike Tipping is a political junkie. He writes the Tipping Point blog on Maine politics at DownEast.com, his own blog at MainePolitics.net and works for the Maine People’s Alliance and the Maine People’s Resource Center. He’s @miketipping on Twitter.