Extending unemployment benefits increases the unemployment rate; why work when you can make the same amount of money staying home?
A Black auto-body shop owner, and a white guy running a mini-warehouse and rental business, separately told me about unemployment: Congress's policies sustain it.
Since 2009, out-of-state corporations bought seven other family-owned warehouses at bankruptcy and auctioned nonpaying tenant’s possessions without mercy. Why is this important? Destroying small businesses hurts the community. As owner of the area's last family-owned storage facility, the white guy can and does helps tenants if they have to leave. He loans them a truck with only mileage charges.
How is Congress causing unemployment?
First, OBama repealed the Section 179 investment expense deduction. This credit lets small-businesses expense the first $250,000 in the same tax year, instead of waiting 3 to 5 years for equipment and 20 to 30 years for real-estate. The multi-business guy would hire people if he could replace equipment and expense it.
Second, increasing unemployment benefits from two months to two years forced my state to sharply increase unemployment-insurance rates; rates depend upon the number of employees. Extending unemployment benefits has kept employers from hiring new employees because it’s too expensive.
Third, why work when unemployment benefits pay as much as a job? The auto-body owner’s best employees won't return because they made the same money on unemployment The white guy said that a private placement agency’s owner had been embarrassed when applicants refuse job offers on line with their former wages because they made as much unemployed..
What is this two-year unemployment benefit? Have you ever had a job where they’ll pay you for two years for going through the motions and interviewing with three employers once a week? That is what unemployment insurance is all about: A job that makes a profession out of doing nothing.
President Obama added $1.5trillion a year to make $3 trillion in debt in two years for his “stimulus plan” which increased unemployment from 8% to 10%! Why didn’t it work? Congress PAYS people to be unemployed. Why work?
To pay for this in the same amount of time, your taxes must increase to 250% of it’s current level. According to the IRS, the entire revenue stream of the US is $1 trillion; and the Adjusted Gross Income (1040 line 32) for every person in America added together is $8 trillion.
www.irs.gov
Your Net Income is usually half or less of Gross Income. If you subtract the $1trillion you pay in taxes, everyone has $3 trillion left to run their lives with. Do the math. To pay back to extra $1.5 trillion, we must add it to the current tax revenue of $1 trillion each year to get 2.5 trillion:
$2.5 trillion needed/ $1 trillion currently being paid = 250% current tax rate. Increasing the taxes this much will make it harder for employers to hire new employees or even to keep all of their workers.
Doesn’t government already take enough out of your check for taxes? If they triple that rate, what will we have left to pay for ‘trivial’ things like house notes, utilities, clothes, food, and gas? The politicians don’t care how it affects you. They want the votes extending these unemployment benefits bring them. Are you going to take it lying down?? Won’t you SAY anything? The people who have been getting a free ride for the past two years are complaining loudly. They want more of your money. Why not say, “Go BACK to your old job. Don’t destroy mine.” ?
