Unemployment taxes fail to cover jobless checks

Unemployment taxes fail to cover jobless checks

www.bostonherald.com

Massachusetts officials are nervously eyeing the outflow of money from the state’s unemployment insurance fund, as the number of people receiving benefits across the nation hit a record high.

The state is now paying out more money in benefits than it’s receiving in taxes from employers, Suzanne M. Bump, the state’s secretary of Labor and Workforce Development, warned yesterday.

In 2008, the state paid out $1.49 billion in benefits, up 17 percent from the year before. Meanwhile, employers’ tax

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Massachusetts is just one. There are 6 other states which are currently insolvent(Whether they admit it or not) and I'm willing to be that number is much bigger due to underreporting. California is leading the way with its' insolvency issues and I expect California to default fairly soon. They are already not issuing state tax returns for fiscal year 2008 and will likely not make any returns for fiscal year 2009. I also expect a huge crash in State and Federal Bonds tied to this huge amount of debt and looming insolvency issues. Nevada is teetering on the brink of insolvency(Even though there are way we could go around it). We are cutting higher education by 45% effectively pricing out or eliminating our future educated work force.

Clark County(Las Vegas) and Washoe County(Reno/Sparks) are laying off firefighter and police positions and the Washoe Sherrif Department is keeping vacant 79 officer positions that are badly needed to combat a rising crime rate. Our unemployment rate stands officially at 9.1 percent, and it is set to surpass 10 percent by the next dated Unemployment Report from the Nevada Department of Labor.

Meanwhile we have a bad news after bad news in the National economy that is threatening to send us swimming in a sea of inflation. Over the last 35 years or so we have seen wages in this country remain stagnant due to large monopolies and foreign-lopsided trade. Meanwhile, the government is helping along with the printing of over two trillion in new paper and electronic money, further hurting the buying power of the population. Soon the only prosperity will exist on foreign soil and in Government.

www.bostonherald.com
(visit the link for the full news article)

Ya alot of states are coughing up the dough for unemployment. That 750 billion bailout sure would have come in handy with this..among other things than to line the pockets of CEO's and politicians who play their puppets.



Cheers!!!!

reply to post by projectvxn


Simple economics when you have more out go then income an implosion takes place. You come to the realization that your state is broke and to try to bail out of the situation you try to borrow more money. Hmmmm sounds like the federal government.

What happens when the majority of people in your state that are on unemployment benefits run out of those benefits? There in turn comes the real problem when groups of people have no food money, can not pay their mortage or car payment.



[edit on 31-1-2009 by amari]

I'm actually glad to find that the Republicans learned from their mistakes. They need work on social issues, but I'm glad not one voted for this ridiculous "Stimulus package". I don't find myself arguing for the GOP often. I can't stand political ideology. But that bill is going to help destroy this country.

And then it gets ugly. Mass civil unrest, food riots, the government clamping down on us. This is something they want. To cause a problem and take control. It is ridiculous to think about sometimes. But the government hasn't been anything but ridiculous for some time now.

Well the only solution to this problem is make/print more money! When you run out of money just make some more! Why is it so hard to understand this concept? That is the answer to this problem!

I was expecting unemployment benefits to become extinct sometime soon. Of course printing more money and giving it to the corporate gangsters will not do any good here. They will still lay-off people to save more money, so this situation is only being prolonged instead of being repaired.

I do not understand what was so difficult for Bush to understand about the word 'Budget'. He fully did not understand the concept of only spending what you bring in. The rest of the households in the country have had to figure this one out. Many carry a 'checkbook' or come up with some other method to make sure they didn't spend more than they had.

So why the heck do the Neocons (Bush/Obama/etc) not understand the simple concept of not spending more than you have/bring in?? Come on, the rest of us can do it. How come the gov't with all of it's 'intelligence' could not find a way, or a person or something, that could get the concept of 'budgeting' through to these people?

EDIT to add rant: WHAT the $%#@ is wrong with these people? What were they thinking when they originally decided that the word 'budget' didn't exist to them?
Let me guess...

"Oh gee, I wanna start more wars but I don't think we can afford it.."
"Well do it anyway, we can just give it all to the rich and then print some more anyway. Come on, nothing to lose. Do it."
"OK. As long as it all goes to the rich, then it's ok."

[edit on 31-1-2009 by LostNemesis]

I agree. But to be fair this wasn't just W's screw up. This is decades of reckless monetary policy, the government artificially inflating demand that wasn't actually there, and pushing a borrow and spend policy. We allowed the banking industry to grow to big to support itself with its' ridiculous leveraging practices(Which are instituted by the fed), and a general lack of generation after generation of responsibility.

[edit on 31-1-2009 by projectvxn]

reply to post by projectvxn


Honestly, my blame goes more to the whole Neocon practice in general more than Bush. I did put Obama into the 'Neocon' category as well. Truly these guys have a general lack of understanding how to only spend what you have.
There is lots of blame to go around though. Somehow I am thinking it all goes back to 'greed' since all of the 'lost' money ended up in SOMEONE'S pocket!

Those that have soaked the resources from this country, while the people paying for it suffer, are the ones to blame the most.

One of the past presidents warned us of not letting the Military Industrial Complex take over. And I believe that they already have. These Neocons have been allowed to run rampant for too long. This huge deficit, come on... It ended up SOMEWHERE!?

The NeoCons are fascist. We have seen a massive National Socialism movement in this country that is threatening to drag us in to the abyss. And I agree that this includes Obama. What we need are Libertarians. Self governance and sound money sound good to me.

If the unemployment benefits run out in California, there is going to be a revolt.

Not only is the state going to give IOU's on refunds to people that were legally FORCED to overpay, now they will have trouble with those that don't have much to lose.

Originally posted by wutone
If the unemployment benefits run out in California, there is going to be a revolt.

Not only is the state going to give IOU's on refunds to people that were legally FORCED to overpay, now they will have trouble with those that don't have much to lose.

You know what? I freakin' HOPE SO. The American people are taking it in full and thus far without so much as a whimper, and that makes me ill. Americans need to stand up. Those tax returns are theirs, the unemployment benefits are theirs, people are having a hard enough time trying to pay for food and lights. Never mind that California's cost of living is ridiculously high. I hope they do revolt, I hope they storm the capital and DEMAND that they do their jobs. I hope everyone in every state drags their "representatives"(Term used very loosely) out of whatever hole they hide in and make them sit there and figure out a sensible and sane fiscal policy. Not everyones' needs will be met. But the state does not need to burned an already stretched thin population to the breaking point just 'cause they can't fund their pet projects or line their bloody pockets...

Sorry...I was actually clenching my teeth as I wrote this...Why does it feel as though I'm the only one getting truly angry over this? It seems everyone is asking "Where's my bailout?" when they should be asking "When is government policy going to be responsible?" "When will I be responsible instead of waiting for Good 'Ole Government to save me?"

God the whole thing just makes me sick.

Well now we know why people could not get the phones and the on line serves from the unemployment offices to work.

They were running out of money!!!!!!

But like many said this is just but a math problem to understand why they are running out of money.

Like I said in other threads for a while.

lost jobs + unemployment = less taxable income

That is why so many states are going bankrupt.

This is interesting.

We are forced to contribute to unemployment insurance. Employers are forced to contribute as well.

Now - we know that the employee has no choice or mechanism to avoid this tax. It never even reaches his account... payroll removes it before disbursement. Employers on the other hand are often blessed by political boons, offsetting their contribution by credits applied for one contrivance or condition or another. Ostensibly the credit represents a contribution to the unemployment insurance fund via another state or even federal agency.

Yet somehow there's not enough money in the fund? How can that be? We - the common laborer - are FORCED to pay - and can't work around that circumstance. SO once again we are ripped off...,

I can't wait to witness the political charade of outrage and disbelief when the social security situation finally gets acknowledged.

Politicians should NOT be allowed to handle money! Do we "get it" yet?



[edit on 31-1-2009 by Maxmars]

Originally posted by Maxmars
Politicians should NOT be allowed to handle money! Do we "get it" yet?

Couldn't have said it better myself. Political ideology seems to be a replacement for facts, figure, and models. None of these people know what the hell is going on and yet both will argue the merits of their spending and borrowing wish lists with no shame. At some point this has got to end.