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**jq0AFTTC** · 10-08-2011, 06:17 PM

Cut unemployment benefits back to normal, and people will find work at the level they are qualified for.

It's not difficult to understand. Let's say you're getting $400 a week in unemployment benefits. That's the equivalent of a fulltime job at $10 an hour. And, the only taxes taken are a flat 10% federal withholding. You aren't paying FICA or State or local taxes on that money.

So why would you go out and get a job, even if it was a few dollars more an hour? Or less, even?

It's a perverse incentive.

It's only a bandaid solution though, and unsustainable. The federal government mandated the states to extend unemployment benefits and LOANED the money to cover them. Still no jobs and the first interest payments are now due. Guess who's footing the bill? Small business owners in the form of tax hikes.

10-08-2011, 06:17 PM	#5
jq0AFTTC Join Date Dec 2005 Posts 380 Senior Member	Cut unemployment benefits back to normal, and people will find work at the level they are qualified for. It's not difficult to understand. Let's say you're getting $400 a week in unemployment benefits. That's the equivalent of a fulltime job at $10 an hour. And, the only taxes taken are a flat 10% federal withholding. You aren't paying FICA or State or local taxes on that money. So why would you go out and get a job, even if it was a few dollars more an hour? Or less, even? It's a perverse incentive. It's only a bandaid solution though, and unsustainable. The federal government mandated the states to extend unemployment benefits and LOANED the money to cover them. Still no jobs and the first interest payments are now due. Guess who's footing the bill? Small business owners in the form of tax hikes.
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