FRSFreeStates: “Bill for Inadequate Unemployment Insurance Taxes Now Coming Due in Many States”: How Best to Fund Unemployment Insurance

Off the Charts Blog | Center on Budget and Policy Priorities | Bill for Inadequate Unemployment Insurance Taxes Now Coming Due in Many States.

Over the last three years the Federal Government as well as State Governments. Have borrowed billions of dollars to fund and extend Unemployment Insurance. As the “Great Recession” has hit so hard and has cost America millions of jobs. That we are now just starting to replace as the economy has picked up. As well as States borrowing billions of dollars from the Feds to fund and extend their Unemployment Insurance as well. Especially because of all the Unemployment Extensions that Congress as passed in the last three years. Because of the lack of Economic and Job Growth that the Economy has produced. And now especially as the Federal and State Budgets have gotten hit so hard. With such a lack of Tax Revenue, these bills from all of this borrowing has now come due. So now the question is what to do, how to fund Unemployment Insurance in the future.

What I would like to see done is a few things. One get Unemployment Insurance as far as the financing and management. Off the Federal Government and allow the States to set up their own Unemployment Insurance Systems. Similar to what we did with Welfare Insurance back in 1996. And then covert these Unemployment Insurance Services, all fifty of them. Actually more then that if you include Puerto Rico and others. Into Semi Private Non Profit Employment Services. Where Unemployed Workers would collect Unemployment Insurance. But also get help finding a job which should be the number on goal. As well as assistance to get additional education like at a Community College. Or a Job Training Program provided by different company’s. And these Employment Services would have to meet basic Federal, State and Local Regulations. But operated independently.

The other thing I would like to see, is to allow workers to expand their Individual Retirement Accounts. To include Unemployment Insurance as well. They would be able to fund their own Unemployment Insurance out of their paychecks. That would be matched by their employer, Tax Free. They could only spend this money, when they lose their job. Get laid off or fired or pay 100% tax on the money they spend when they are working. That would go back in their Unemployment Insurance Accounts. So workers would have more money to spend and be encourage to save more. So the next time a recession hits and they are out of work. Long term 12-24 months or longer, they would have more income to rely on. Current Unemployment Insurance doesn’t pay the bills for most Unemployed Workers.

The United States has a 15T$ National Debt that now matches our Gross National Product. We now have a 2T$ National Deficit thats 13$ of our Debt and GDP. We no longer have the resources to police the World and run. A Safety Net for a country of 310M people. We need to get back to Limited Government. And focus the Federal Government on only what it can do well. Protect, defend, represent, regulate and research.

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About Derik Schneider

Blogger on everything that interests me and that I'm knowledgeable about.
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