Redistribution of wealth: 2362 millionaires collecting unemployment

How well does government redistribute the money that they take from job creators and workers?

From CNS News.

Excerpt:

There were 2,362 people who earned a million dollars or more in taxable income in 2009 and who also received federal unemployment benefits that year, according to a report by the Congressional Research Service.

In fact, these millionaires collectively raked in more than $20 million in unemployment benefits.

The Congressional Research Service report–Receipt of Unemployment Insurance by Higher-Income Unemployed Workers (“Millionaires”)–was published on Aug. 2 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.

The CRS reported that millionaires received $20.8 million in federal unemployment benefits in 2009, up from $18.6 million in 2008. That averages out to $8,806 in unemployment benefits per millionaire.

Unemployment insurance is a joint federal-state program and is funded by a payroll tax assessed against all workers. In the four years preceding 2012,according to the Tax Foundation, the unemployment insurance system was in the red. “Between 2008 and 2011, $174 billion was paid in unemployment taxes while $450 billion was paid out in benefits, a gap of $276 billion,” the Tax Foundation said.

[…]In addition to the 2,362 people with adjusted gross incomes of $1 million or more who got unemployment benefits in 2009, 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.

The money that is paid out for unemployed people is taxed from all workers. That means that my unemployed insurance payments are funding unemployed millionaires. I’ve also had to pay Social Security, Medicaid and Medicare, and I’ve never taken a dollar back from that.

According to this Senate report, millionaires collected $9 billion in Social Security payments from the government from 2004-2009. I’ll never collect a dime of Social Security, but I’m paying for theirs. There is no reason for me to be paying into Social Security – it’s not a good deal for younger workers.

2 thoughts on “Redistribution of wealth: 2362 millionaires collecting unemployment”

  1. Sure, there are always folks who scam the system, at any level.

    Not to be rude, but do you think it could also be said that a small portion of their salary could fund unemployment insurance for you?

    I would hope that most people realize that “millionaires” usually work and have a salary, too. That means payroll tax is taken put for them, too.

    Obviously, they seem to have a nice safety net, but consider that there are plenty of “millionaires” living month-to-month just like the rest of folks. See The Millionaire Next Door for examples.

    Like

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