We’ve all got our opinions about Federal entitlements. But I think it’s safe to say that, without question, some of them desperately need overhauling.
Take unemployment compensation, for example. After all, what could be better justified than providing temporary help to folks who just lost their job?
Well, you might want to take another, more in-depth look. The devil is sometimes in the details.
Like this detail: Federally-funded unemployment compensation is not means tested. And that means that 2,362 Americans living in households with taxable household incomes in excess of $1,000,000 received unemployment compensation. Dig a little more, and you find out that over 956,000 people living in households with taxable income in excess of $100,000 in 2009 did the same.
Where does that money come from? It comes from payroll taxes levied on employers – who cover the cost by raising their prices, and pass the cost along to us. These payroll taxes go into specified unemployment funds; compensation is paid from these funds. And when these various funds set up to pay unemployment compensation runs short, Uncle Sam generally ponies up more to make up the shortfall – from Federal revenues.
In short: the money for unemployment compensation comes out of our pockets, one way or another. We pay for it.
Hey, I’m OK with helping out folks when they need a little temporary help for events outside their control. But let’s not check common sense at the door when we do that, either.
Someone getting unemployment compensation – or any other form of public “assistance” – while living in a household having a taxable income of $100,000 or more just doesn’t pass the common sense test. At least in my book, it doesn’t. IMO this program absolutely screams for a bona fide, no joke means test.
More to follow on this subject in the future, as time allows.