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Re: Millionaires Got $80 Million in Jobless Aid in Recession

By: DigSpace in ALEA | Recommend this post (0)
Fri, 05 Apr 13 7:17 PM | 76 view(s)
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Msg. 13165 of 54959
(This msg. is a reply to 13162 by clo)

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FWIW, to the extent that arguments are made that SoSec is not an entitlement, but a paid into owned benefit, then the same holds for unemployment benefits. This is a paid into system (insurance program) to theoretically provide benefits to those who suffer insured losses. In this case what is insured is employment, loss of employment being the insured loss. Now, when one wanders into the land of "extended benefits" then one wanders into the land of welfare. But just as SoSec is a paid into systems of retirement insurance, so to is unemployment a paid into system of employment insurance.

The broader question is the notion of means testing for paid into insurance systems. Certainly, if my house burns down, I am insured and I expect compensation, and I do not expect that my compensation is somehow means tested. I bought the damn insurance. That is where the anti-means testing wealthy perspective comes from, and it is by no means a a perspective on some sort of weak footing. The left has decided to have it both ways ... SoSec is an umimpeachable owned benefit because it was paid into ... well except for people who make more than we like. In which case they paid in and owned until we decided they are too rich and they don't.

The fair solution is to tax all SoSec, unemployment, and so on according to ones tax bracket. But these are paid for insurance programs, I can not see a rational way to exclude a segment of insurance policy holders from their coverage on insured matters.

As far as having the "well-off" pay more towards Medicare ... once again, the Medicare benefit should be part of box 1, wages tips and other income. If you are poor, it will be free, it you are rich, the benefit will be taxed at the highest marginal rate.

Coming up with multiple tiers of choosing to honor insurance obligations is a fools folly. These insurances (unemployment, sosec, medicare) should be treated as taxable income ... the progressive tax code will simply sort out who "deserves" more and who deserves less.




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The above is a reply to the following message:
Millionaires Got $80 Million in Jobless Aid in Recession
By: clo
in ALEA
Fri, 05 Apr 13 6:48 PM
Msg. 13162 of 54959

Millionaires Got $80 Million in Jobless Aid in Recession

By Frank Bass - Apr 4, 2013 8:00 PM ET

The U.S. government paid almost $80 million in unemployment benefits during the worst of the economic downturn to households that made more than $1 million, including a record $29.9 million in 2010, tax records show.

Almost 3,200 households -- about 20 percent of them from New York -- that reported adjusted gross income of more than $1 million received jobless-insurance payments averaging $12,600 in 2010, the latest year for which figures are available, according to IRS data compiled by Bloomberg. Those payments outpaced the total incomes for about 25 million U.S. households.

The $80 million represents less than 0.01 percent of this year’s $845 billion projected deficit. Yet the unemployment aid to millionaire households underscores the lack of means-testing in some federal aid programs as the Labor Department reports new jobless figures today. The aid also is a reminder of the difficulty of reining in spending.

“So many people are taking advantage of government support that they probably feel like, why shouldn’t they take advantage of it, too?” said George Walper Jr., president of the Spectrem Group, a Chicago-based market-research and consulting firm that tracks the number of households worth more than $1 million.
Lawmakers have repeatedly tried to end or limit benefits to high-income households. A January report by the Congressional Research Service found at least five such efforts.

The House of Representatives passed legislation in December 2011 as part of a jobs bill that would have taxed unemployment benefits at 100 percent for single filers with adjusted gross incomes exceeding $1 million or married filers reporting $2 million in income. The provision wasn’t included in the bill signed by President Barack Obama.

more:
http://www.bloomberg.com/news/2013-04-05/millionaires-got-80-million-in-jobless-aid-in-recession.html


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