It’s understandable why Democrats would feel embarrassed about unemployment. Employers are cutting jobs, reducing hours, and lowering wages as a direct result of the Obamacare mandates and taxes. Instead of putting out the fire that they set, Democrats have decided to distract our attention by offering band aids for the economic burns in the form of unprecedented long-term unemployment benefits.
Typically, the Unemployment Insurance program lasts for 26 weeks of unemployment with an additional 13 weeks during recessions. Most of the cost is purveyed by employer payroll taxes. Since 2008, however, Congress has funded Unemployment Insurance (UI) benefits for up to 99 weeks of unemployment.
As part of the fiscal cliff deal, they extended benefits for up to 73 weeks. In total, extended unemployment benefits have been renewed 11 times since 2008. Over the past 5 years, the federal government has collected roughly $240 billion in federal unemployment payroll taxes, while paying out about $600 billion in benefits. We are already in uncharted waters and dangerously close to creating another permanent entitlement program.
Front Porch Punditry
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Wed Jan 08, 2014 9:53 am
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Front Porch Punditry