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According to The Washington Post, currently 25 states have been forced to borrow USD 25 billion from the federal government to keep their unemployed a float.
The Department of Labor estimates that by 2011 some 40 states will have run out of employment money and will be in need of borrowing USD 90 billion from the federal government.
according to federal projections, 40 state programs will go broke within two years and need $90 billion in loans to keep issuing the benefit checks.
he shortfalls are putting pressure on governments to either raise taxes or shrink the aid payments. Debates over the state benefit programs have erupted in South Carolina, Nevada, Kansas, Vermont and Indiana. And the budget gaps are expected to spread and become more acute in the coming year, compelling legislators in many states to reconsider their operations. Currently, 25 states have run out of unemployment money and have borrowed $24 billion from the federal government to cover the gaps. By 2011, according to Department of Labor estimates, 40 state funds will have been emptied by the jobless tsunami.
State unemployment-compensation funds are separated from general budgets, so when there is a shortfall, only two primary solutions are typically considered -- either cut the benefit or raise the payroll tax.
Nationally, the average tax is about 0.6 percent of payroll; the average weekly check is about $300.
"We've obviously got problems with the fund," said South Carolina House Majority Leader Kenny Bingham (R), blaming the trouble in part on the state's unemployment rate of more than 12 percent. The state owes about $654 million to the federal government for unemployment payments. "We're not trying to cut benefits," he said. But "if you jack rates up, those business that are struggling to hang on, you make things more difficult."
Originally posted by Desolate Cancer
Unemployment is critical and one of the best uses of funds but there are a lot of people who re receiving benefits that should not be. Like a friend of a friend of mine she is 24 worked as a nurse assistant or something and got fired because of some drug issues. She has been receiving benefits for nearly a year and jokes that every time the benefits get extended she doesn't need to bother looking for work. Or he friend who was an intern and got fired because of something that was her fault and she is getting unemployment. If only there was a better way to sort out the people who deserve it from those who dont we would be in a better situation.
Raising taxes on businesses would be severely damaging though so I certainly hope they dont go that route or expect ot see the situation get worse.
Originally posted by Iamonlyhuman
She has been receiving benefits for nearly a year and jokes that every time the benefits get extended she doesn't need to bother looking for work.
Originally posted by TheCoffinman
well the source is presstv which is iranian... i dont discount the source, but it is biased. however, im not one of those people who dont take it into consideration at all just because of the source. i wonder where they got thier info from... if true, this is insane!!! and no surprise... guess we'll see where this goes and take it form there.
Originally posted by Doc Velocity
Believe me, the USA is not "running out of money" — The U.S. has enough money to float our boat and the boats of the rest of the world. I mean, just shut off the flow of American cash and see what happens to the rest of the world.
It would be like dropping the world back into the 18th Century.
Originally posted by ukmadmax
So whats the problem ?
Just come and sign on for your free benefits here in the UK.
The rest of the world does, so don't feel guilty.
Originally posted by moniker
What makes you think that? The US dollar is not the only major currency in the world. In many ways it is no longer even THE major currency.