The fears of Democrats anxious to pass an unemployment benefits extension were realized yesterday. Dow Jones is reporting that Senate Republicans' plan to stall debate on the bill (H.R. 3548) -- which was expected to hit the floor this week -- because they object to its primary funding mechanism: an extension of the federal unemployment surtax for an additional 18 months.

Currently, employers pay a 6 percent tax on the initial $7,000 of employees' wages, the bulk of which is offset by tax credits. This surtax slaps an additional 0.2 percent onto employers, averaging out to $14 per employee annually. The GOP says the extra burden could prevent businesses from hiring. But because the surtax has been extended so commonly over the past 30 years, many businesses have already budgeted for it. Robert Bixby, executive director at the Concord Coalition, tells Dow that it's a "baked-in cost."

Instead, Republicans will offer an amendment to pay for the legislation using unspent stimulus funds. It's unclear how much of that money has not already been allocated. I'm sure we will find out in the coming days. In the meantime, it's safe to assume that no bill will get to the president's desk until at least Thanksgiving.

(H/T Washington Independent)

UPDATE: The Wall Street Journal reports that it remains "uncertain" when the bill will hit the Senate floor, "although it is possible it could as soon as Thursday."