Question

Unemployment compensation has been a benefit available to most American workers for many decades. This benefit is provided though a combination of State and Federal programs. Funding for these programs comes from taxes paid by businesses on their payrolls. Discussion and debate has been on going regarding the level of benefits that should be paid, the length of time that these benefits should be paid, and the relative ecomomic benefit that the payments ultimately have.

Please comment on unemployment benefits, unemployment taxes and related matters by considering the following questions:

1. If you are aware of situations where the unemployment benefit system has benefited someone, or a situation where it has been abused by someone, please describe the situation. You don't need to use specific names, places or businesses, but give us a general discussion of what you knew to be true.

2. Give your opinion as to why the situtation was either beneficial or abusive. Suggest ways that the system could have worked inorder to catch the people who were taking advantage of the situation.

3. Discuss whether you believe that the taxes paid by businesses are excessive (consider the % required and the level of payroll that is taxed). Do these taxes help encourage or discourage businesses from locating in our state?

Answer 1

1.

Unemployment benefit system may help a person if he is willing to work, he is fired even though it was not his mistake. This benefits helps a hardworking person to search for a job in case of unemployment. It comes to his mind that he has family to take care of so he will think that unemployment benefit is not sufficient to feed his family, provide his children with quality education. so if he thinks of working hard rather than just benefiting from this fund he use the pension from this fund to fund maybe his business, educate him,self to learn new skills and get the best possible job. This will help him to earn more than the amount provided from the unemployment fund. in this way a person of my knowledge used this fund to fund himself set up a new business and start earning again once he lost his job in the times of recession.

There are also people who take the advantage of the benefit system and become lazy and solely dependent on the pension received from this fund. So i think the some cap should be applied on the time limit to avail this fund service. this will make a person more proactive and this will help to reduce his dependency on the unemployment benefit system. this will stop people from abusing this scheme

2. This scheme helped my friend to start earning again by setting up his new business.

For those who abuse this system, i think the some cap should be applied on the time limit to avail this fund service. this will make a person more proactive and this will help to reduce his dependency on the unemployment benefit system. this will stop people from abusing this scheme.

Also a due diligence should be conducted of the person's background check that will help keep track of the current status of the one who avail this service.

3. This is more of a subjective question. In case the government provides the business with the ease of doing business, proper law and regulations are laid out, efficient financial system exist, then in that case high tax rate is worth it. Because indirectly the money is going to spend for the better infrastructure and for the social benefits of the masses. This would indirectly increase the business revenue and will help the businesses to grow organically and sustainably.