Extended break is welcome news

It’s good to see both Democrats and Republicans agreeing on some tax breaks for homebuyers and small businesses.

Both the U.S. House and Senate have passed a measure to extend unemployment checks, a popular tax credit for homebuyers and tax credits for small businesses. President Barack Obama is expected to sign the bill into law soon.

About 7,000 people run out of unemployment benefits daily in the United States, and the $8,000 tax credit for first-time homebuyers was set to expire at the end of this month. A tax credit for homeowners who have lived in a dwelling for at least five years also will be added.

There are those who are worried about adding to our nation’s spending given the current economic downturn. That’s not a silly concern. But the measure does outline how it will pay for the extra benefits, mostly by extending the federal unemployment tax that employers pay for each employee through June 2011.

Unemployment in the Rocky Mount metro area was 13.4 percent in September. This measure will help many former workers survive until they can find new jobs. The IRS says about 1.4 million have taken advantage of the new homebuyer tax credit, which has helped stabilize the housing market.

The measure even allows businesses that incurred loses in 2008 and 2009 to get refunds on the taxes they paid during better times. Measures like this to help keep businesses afloat will pay off once the economy begins to grow again.

Until then, it’s good to see Washington agreeing to offer a helping hand to smaller businesses and regular people. It’s not just the big banks that were hurt by the economic meltdown.