You know, they're taxing unemployment benefits ... !!!

[defendandprotect]

Poll question: You know, they're taxing unemployment benefits ... !!!

[SeattleGirl]

1. Yep, they are. I had them take out 10% when I was on unemployment,.

Didn't want to get dinged at tax time, but damn, it wasn't like I was making a fortune on UE bennies.

[Hamlette]

2. they always have, this isn't anything new n/t

[defendandprotect]

5. Yes ... it's new ... wasn't always taxed til GOP took over ...

[Le Taz Hot]

18. I had unemployment in 1979

and they taxed that. It really ISN'T new.

[Hamlette]

23. 1979 was the first year it was taxed n/t

http://ideas.repec.org/p/nbr/nberwo/1260.html

[defendandprotect]

34. Amazing . . . it's really a self-defeating idea and had didn't know ....

how long going on!!!

This is another "means testing" which ends up screwing up the program.

It's like people objecting to a millionaire getting Social Security tho they

paid into it!!!

Evidently some objected to millionaires getting unemployment when unemployed!!!

It's those kinds of petty distractions which enable right-wing propagandists to

to take hold and strangle good programs.

There shouldn't be any taxes on any of these benefits!!

Again -- it's self-defeating --

[tsuki]

20. That is a big shout out to the Ray-gun. Since unemployment is

not enough to trickle down, tax the motherf**kers.

[raccoon]

22. I think it was in the 1986 Tax "reform." Thank St. Ronnie for that. nt

[defendandprotect]

35. At any rate, we should STOP taxing unemployment benefits ... especially now!!!

[catnhatnh]

3. Man this post is heaven sent....

...because of recent posts on tax cheats....about 8 years ago my brother collected for a week or two and failed to declare it...within 6 months he got a letter from the IRS demanding the $28 he owed plus about $26 in "interest and penalties" AND included a threat of legal action. Guess how I feel about appointees to high office who "made mistakes"???

[Fire_Medic_Dave]

12. I'd been out of the Army for 6 months and they sent me a letter....

saying I owed them about $300 dollars. They said they reviewed my records and they overpaid my combat pay from 2 years earlier. I wrote back and told them I reviewed my records and I didn't owe them crap, and if they could prove to me beyond a shadow of a doubt that I owed them money then I'd think about paying them. Never heard anything else.

David

[catnhatnh]

14. Good for you...

We differ on gun control Dave-but I like your style,
Regards,
Cat

[Fire_Medic_Dave]

16. Agreeing all the time is boring.

Cheers

[defendandprotect]

36. The right-wing works from bottom up, attacking the weakest first . . .

but they finally get every last cent/asset from everyone --- no matter how they

have to do it ---

Regan began by attacking people on welfare who were handicapped, blind, comatose --- !!!

Totally disabled -- many committed suicide --- !!!

Thousands, in fact. Press, it seems, wasn't reporting all of this.

I learned about it much later.

Look at how long we've had HOMELESS now --- and such a part of our society for decades

now very little mention is made of it!!!

I'm hoping we will all nag Obama about this --- and impoverished children.

I want to hear about it EVERY DAY!!!

[Blue_In_AK]

4. They always have taxed unemployment benefits.

It doesn't seem fair, but that's the way it is.

[defendandprotect]

6. No--- not true ... fairly recent --- with coming of GOP --!!!

[hfojvt]

10. not that recent. It started in 1987

almost before I entered the workforce, and when Democrats still controlled the House.

[Blue_In_AK]

13. Yeah, it's been a while.

My ex got unemployment for a while sometime way back in the early '90s. I was surprised when we had to pay taxes on it.

[catnhatnh]

17. But the administration's affiliation (D or R) is based on the President

And the President in 87' was....whom?

[defendandprotect]

28. Reagan .... but they say that after the shooting, Bush was president --

[defendandprotect]

27. 1987 certainly wouldn't be recent ...!!!

I'll try to look it up --- circumstances ... whatever -- when I can.

I remember the GOP nagging on it --- and I wasn't watching Senate on C-span

til after '89 ... at earliest. Memory does play tricks sometimes ...!!!

[hfojvt]

7. Why shouldn't they tax unemployment benefits?

You think that only people who work for their money should be taxed?

My principles are simple

1) you get money, you pay a tax
2) the more money you get, the higher your tax rate.
3) if any money is to be taxed at a lower rate, it should be wages - not capital gains, not dividends, not inheritance, and not unemployment. Wages.

p.s. There's no FICA taxes on unemployment, so they are already taxed less than wages.

[defendandprotect]

8. Because unemployment isn't equal to salary --

won't meet all expenses --

being unemployed is a hardship --

Unemployment benefits were never originally taxed for good reason --

And especially in this depression-like economy it would make no sense to tax U/E except as

anti-stimulus.

Overall, we should be embarrassed to be bailing out corrupt capitalism while taxing those

who have been laid off because of capitalism's failures and greed - again--!!


1) you get money, you pay a tax
2) the more money you get, the higher your tax rate.
3) if any money is to be taxed at a lower rate, it should be wages - not capital gains, not dividends, not inheritance, and not unemployment. Wages.

Except if you're a corporation ...!!

[hfojvt]

9. oh nonsense

the fact that you get less money already means that the tax is lower. If you make less than $8,500, then you pay no tax. The next $7,500 is taxed at 10%, and the next $23,000 is taxed at 15%.

The bottom line fact, for me, is that I make $274.20 a week, in an average week. I pay taxes on that money. Now if somebody else gets $300 a week in unemployment and pays zero taxes, then I think that is bullsh*t with a capital sh*t. I work and pay taxes on that money. They don't work, and don't pay taxes even though they make more money than me.

Now, you are gonna argue that this is a pay cut for him/her because 'they are used to making more money.' Well, boo hoo to that. Because they are used to being way better off than me, they shouldn't have to pay taxes if they fall to a level where they are only slightly better off than me. Again, that smells like bullsh*t.

Try not to bring in too many red herring either, like the bailout and corporate tax rates. We are talking about people here.

Plus, I have been on unemployment and it was not a hardship. I loved it. It was like my first extended paid vacation in about a decade.

[Fire_Medic_Dave]

11. What if you include the earned income tax credit?

[hfojvt]

15. then the taxes are even lower

The tax rate is zero for the first $10,550. More if you have kids. At $25,000 and two kids, you have zero taxes and an EIC of $3,119. At $35,000 and two kids, still zero taxes and an EIC of $1,002.

Plus, there are no FICA taxes on unemployment. So if you get $3529 in unemployment compensation, like I did in 2002, then you only pay income tax on that. For me, that was zero in 2002, because my AGI was only $10198 after a $2659.10 donation to my IRA. Whereas a person who worked for $3500 would have to pay almost $270 in FICA taxes.

[defendandprotect]

31. Btw, the benefits have also been reduced in how long they can be collected . . .

and I think in amounts ---

And I certainly remember the GOP denying extensions --- over and over and over again!!!

[ozu]

26. good post

The maximum weekly unemployment benefit in NJ is $560/week, which is essentially a 29k salary by the state for 6-9 months, for not having to do anything but jobhunt.

They should be paying taxes on it.

[defendandprotect]

29. We'd be defeating the very purpose for which we are giving the benefit . . .

They also now pay into it -- which didn't used to be the case.

Rather than taxing it -- monitoring it -- whatever -- filling out forms ---

why not just reduce the benefit by an minor amount? More practical.

These are not earned wages --- it is a fund paid into by employers which used to be 100% . . .

and now by employees.

Again -- these are unemployed with questionable futures ahead of them ---

EXPECIALLY NOW WITH THE COUNTRY NEAR BANKRUPT AND ENTERING DEPRESSION!!!

Corporations are supposedly "people" --- but without responsibility.

We've just bailed out capitalism --- a "King-of-the-Hill System" intended to move the

wealth and resources of nations from the many to the few.

We've just bailed out CORRUPT capitalism -- and that's been a repeat situation over

more than 100 years! There they go, walking off with taxpayer money again ---

and what you have on your mind is taxing the unemployed!!!

Obviously, you're no "bleeding heart Jesus liberal" . . .


PS: I say what a red herring is and your post is reeking of them!

[Balbus]

19. As well they should.

[Bluenorthwest]

21. They also tax Social Security

and all other disability or retirement benefits. They tax the disabled. Obama claimed during his campaign that he would put a stop to taxing those benefits for people who make less than 50K a year. But instead he is going to mail $300 checks to those folks. Which many will use to pay taxes. And so it goes...

[prolesunited]

25. He can't do that by executive order

and ASFAIK there won't be any checks mailed out under the stimulus.

[defendandprotect]

32. Taxing any of these benefits is self-defeating . . . .

Taxing the disabled --- !!!!!

What we need to be doing is increasing taxes on elites/corporations ---

coming back to the rates from the 1950's !!!

and closing loopholes --- making off shore banking illegal ---

Also think Swiss bank accounts are a threat to democracy ---

Look how many elderly are in the workforce ---

We should increase Social Security Benefits which were smothered by GOP ---

and open up jobs for young people. That was the original idea of 65 year retirement!!!

[road2000]

24. Reagan did start it.

His comment will always stick in my mind: "taxing the lazy." Doesn't anyone else remember that?

[defendandprotect]

33. Missed that one -- !!! Creepy man --- !!!

[BlooInBloo]

39. Ah - good to know.

[Occam Bandage]

30. Thank God they're not taxing unnecessary punctuation. You'd be fucked. nt

[Harry Monroe]

37. And you're suprised about this why...??

They've always taxed unemployment benefits.

[BlooInBloo]

38. They always have, haven't they?

[MrSlayer]

40. Um, yeah. Carter started it, Reagan finished it..

Under Carter, unemployment benefits began being taxed at 50%. Under Reagan it went to 100%. It's disgusting.

[dysfunctional press]

41. nothing new about that- i always paid taxes on mine.

:shrug: