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2,362 U.S. millionaires went on unemployment insurance
By Catholic Online (NEWS CONSORTIUM)
August 14th, 2012
Catholic Online (www.catholic.org)
August 14th, 2012
Catholic Online (www.catholic.org)
When a U.S. laborer draws unemployment benefits, it's usually thought of as a reduction of a standard of living to one who had previously been reaching a standard of living. What many people don't know is that workers earning million dollar salaries, who were then let go, still drew unemployment benefits afterwards.
LOS ANGELES, CA (Catholic online) - In fact, there were 2,362 people who earned a million dollars or more in taxable income in 2009 that received federal unemployment benefits that year, according to a report by the Congressional Research Service. These aforementioned millionaires collectively raked in more than $20 million in unemployment benefits.The report, from the Congressional Research Service report was published earlier this month and was based on the most recent data available from the Internal Revenue Service.
"Among tax filers with AGI [Adjusted Gross Income] of $1 million or more, 2,840 reported receipt of unemployment benefit income in 2008 and 2,362 tax filers reported receipt of unemployment benefit income in 2009," the CRS reported.
Millionaires received $20.8 million in federal unemployment benefits in 2009, up from $18.6 million in 2008, averaging out to $8,806 in unemployment benefits per millionaire.
Funded by a payroll tax assessed against all workers. Department of Labor regulations require that unemployment benefits must be paid to all unemployed workers regardless of their income.
"This requirement is based upon a 1964 U.S. Department of Labor (DOL) decision that precludes states from means-testing to determine UC [unemployment compensation] eligibility," the CRS said in its report.
"Under this interpretation, federal law requires entitlement compensation to be determined from facts or causes related to the individuals state of unemployment," CRS reports. "Thus, the DOL requires that states pay compensation for unemployment to all eligible beneficiaries regardless of their income level because individual or household income would not be considered to impact the fact or cause of unemployment."
This figure does not take into account that there were also 8,335 people with incomes between $500,000 and $1 million who received benefits and 120,227 with incomes between $200,000 and $500,000 who received benefits.
House Minority Leader Steny Hoyer declared last month that unemployment benefits along with food stamps were the two most stimulating things the government could do for the economy.
"If you talk to economists, they will tell you there are two things that are the most simulative that you can do--one's unemployment insurance, the other's food stamps, okay?" Hoyer asked.
"Why is that?" Hoyer said. "Because those folks who receive those resources must spend them. And they'll spend them almost upon receipt. Most economists with whom I talk believe that those with significant discretionary income, that that's not the case."
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