House Democrats scale back jobless bill in effort to boost support

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House Democratic leaders have scaled back a tax and spending package that would extend unemployment benefits, in an attempt to pick up votes from lawmakers concerned about deficit spending.

The pared-down bill released Wednesday evening would provide expanded jobless benefits through November and delay scheduled cuts in Medicare payments to doctors until 2012.

The cost of the bill was reduced by more than $50 billion, to about $140 billion. It would add about $84 billion to the federal budget deficit.

House leaders hope to vote on the bill Thursday.

If Congress doesn’t act, thousands of people would begin to lose jobless benefits when a current extension of unemployment insurance expires next week. A 65% subsidy for health insurance benefits for the unemployed under the COBRA program also expires. The original package unveiled last week would have extended unemployment benefits through December and delayed a 21% cut in Medicare payments until 2014.

The cost of the bill would be partially offset by tax increases on investment fund managers, oil companies and some international businesses. The tax increases total about $57 billion over the next decade.

-- Associated Press