Or donate here. Let's wrap this up.
Posted on 08/13/2012 4:07:44 PM PDT by Sopater
There were 2,362 people who earned a million dollars or more in taxable income in 2009 and who also received federal unemployment benefits that year, according to a report by the Congressional Research Service. In fact, these millionaires collectively raked in more than $20 million in unemployment benefits.
The Congressional Research Service report--Receipt of Unemployment Insurance by Higher-Income Unemployed Workers (“Millionaires”)--was published on Aug. 2 and was based on the most recent data available from the Internal Revenue Service.
“Among tax filers with AGI [Adjusted Gross Income] of $1 million or more, 2,840 reported receipt of unemployment benefit income in 2008 and 2,362 tax filers reported receipt of unemployment benefit income in 2009,” the CRS reported.
The CRS reported that millionaires received $20.8 million in federal unemployment benefits in 2009, up from $18.6 million in 2008. That averages out to $8,806 in unemployment benefits per millionaire.
Unemployment insurance is a joint federal-state program and is funded by a payroll tax assessed against all workers. In the four years preceding 2012, according to the Tax Foundation, the unemployment insurance system was in the red. "Between 2008 and 2011, $174 billion was paid in unemployment taxes while $450 billion was paid out in benefits, a gap of $276 billion," the Tax Foundation said.
Department of Labor regulations require that unemployment benefits must be paid to all unemployed workers regardless of their income.
"This requirement is based upon a 1964 U.S. Department of Laobr (DOL) decision that precludes states from means-testing to determine UC [unemployment compensation] eligibility," the CRS said in its report.
"Under this interpretation, federal law requires entitlement compensation to be determined from facts or causes related to the individuals state of unemployment," said CRS. "Thus, the DOL requires that states pay compensation for unemployment to all eligible beneficiaries regardless of their income level because individual or household income would not be considered to impact the fact or cause of unemployment."
In addition to the 2,362 people with adjusted gross incomes of $1 million or more who got unemployment benefits in 2009, there were also 8,335 people with incomes between $500,000 and $1 million who received benefits and 120,227 with incomes between $200,000 and $500,000 who received benefits.
On July 17, House Minority Leader Steny Hoyer said that unemployment benefits along with food stamps were the two most stimulative things the government could do for the economy.
"If you talk to economists, they will tell you there are two things that are the most stimulative that you can do--one’s unemployment insurance, the other’s food stamps, okay?” said Hoyer.
“Why is that?” Hoyer said. “Because those folks who receive those resources must spend them. And they’ll spend them almost upon receipt. Most economists with whom I talk believe that those with significant discretionary income, that that’s not the case.”
Social Security operates as a welfare program rather than insurance because its benefits are not proportional to the amount paid in. If you earned at the cap for your entire career and thefore paid the maximum SS tax you would only get 33% more than someone who earned and paid half as much.
It is not true that, if you paid in, you get paid unemployment benefits: my husband is self-employed and must pay a sizable chunk into unemployment regularly. Because he is self-employed, he is barred from ever collecting any benefits.
The money employers pay is a percentage of the wages, isn't it? Are the payments capped at a certain wage level? If not, these guys' employers paid in a whole bunch of money for their unemployment insurance. (From each according to his ability,...)
To deny them legitimate insurance benefits based on their other income is just flat wrong. (...To each according to his needs.)
Small farmers can easily earn a million dollars or more in taxable income (gross), when their crops are sold. Then they have to turn around and pay most of that right back out to repay loans for farm equipment, seed, fertilizer and pesticide, as well as taxes and rent.
Often with a more than million dollar gross, they will net under $40,000.
While farmers are a good way to illustrate this, how about doctors, who might earn a million dollars gross, but have to pay half of that in malpractice insurance, and a big chunk in employee wages, and oh yes, repay enormous student loans.
The same problem applies to a lot of small businessmen who are reliant on a big gross, because they have big expenses that must be met.
Employees who gross over a million may also have a relatively low net, again with big drains on their cash as soon as they earn it.
Offensive. I have had many employment gaps and refuse to file.
“”””It is not true that, if you paid in, you get paid unemployment benefits: my husband is self-employed and must pay a sizable chunk into unemployment regularly. Because he is self-employed, he is barred from ever collecting any benefits.”””
I’ve paid on myself for over 30 years and I cannot collect a dime.
And since hussein decided unemployment should be given out for 99 weeks instead of the usual 26, I am expecting we employers will have our rates increased dramatically to pay the difference.
Another reason why I cut way back on my hiring. I’m tired of being the revenue collector for the government.
“If you have made good decisions in your lifetime (and come out ahead with millions in the bank), why shouldn’t you get the money back that you have put in?”
Because you’re stealing from others? Stealing is wrong whether or not you are the beneficiary.
Unemployment insurance and social security should be optional, not mandatory. Period.
“”Offensive. I have had many employment gaps and refuse to file.”””
Why would you turn down money that is rightfully yours?
I'd bet your left nut.
My pop paid SSI DOUBLE for I can't count how many years....because he was self-employed..NEVER saw a dime of it.....
I've paid double for many years myself....
That said,....I've no problem with folks that have paid in...collecting when they need to.
THAT SAID......the FED's don't give a rat's ass what you've paid...
I don’t see it as a problem at all. They paid in just like everyone else didn’t they? Probably paid in a hell of a lot more than the average person, I bet.
Unemployment is supposed to be “insurance”, not simply an entitlement program for the unemployed. So, I don’t care if you have 20 million in the bank, if you’ve paid your “insurance” premiums, you have every right to take your payout when you qualify.
The proper thing to do, I think, is not to means test for unemployment, but to set up a new, separate program if you want to establish some long term unemployment entitlement. Obama and Congress were too lazy to do that though, so they took the easy way out and muddled up the whole system.
That’s the worst, since he’s got to pay both the employer & the employee’s share of the unemployment tax, so he’s paying double what everyone else is.
I wonder if he could just set his business up with an LLC or something, and put you as the owner, with him as an employee. You’d pay the same amount of taxes, but if you ever wanted to close the business, you could “fire” him, and maybe he could get unemployment.
“they shouldn’t be getting unemployment.”
They PAID for that insurance. I suppose they shouldn’t get auto insurance payments for collisions or any other insurance payment because you think they are too rich?
“I have had many employment gaps and refuse to file.”
Well, that was stupid of you. Aproximately 3% of your wages went into that insurance pool.
You guys crack me up.
Shouldn’t you be screeching about those greedy old people and their social security “entitlement”?
But as another poster noted, big difference between 'millionaire' and some who might transact millions in business but be paid on a tight margin.
Although most farmers I know are self-employed and/or run income through Subchapter S (although you see more LLCs with farm-to-market locavore foodies), so they wouldn't draw UI anyway.
But say, a realtor would.
That's BS. These people, despite their income, had part of their wages garnished in the name of “unemployment insurance” just like everyone else.
Once they lost their jobs, they became eligible to draw down on their unemployment insurance at a rate proportional to what they contributed.
Unemployment insurance is designed to provide income to people paid into the system and who become temporarily unemployed - it was not intended as an free entitlement.
The extension of the benefits to 99 months does, however, effectively turn unemployment payments into an entitlement program.
“Because you’re stealing from others? Stealing is wrong whether or not you are the beneficiary.
Unemployment insurance and social security should be optional, not mandatory. Period.”
What you propose is wealth redistribution, comrade. Right now, since you are forced to put in money, so why shouldn’t you get it back regardless of your net worth?
I agree, however, that the insurance and security should be optional so that those who can afford to put money get back their dues, not some moocher who is living off of a broken system. Until then, all those who have put in should get their dues. Anything else is wealth redistribution.
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