States owe feds 42 Billion for Unemployment Payout
Imagine a what $42 Billion dollars would look like considering the picture here represents about $1oo,ooo bucks. It would take 420,000 of these same piles to equal the amount 30 States owe the federal government this year for the Unemployment payouts. When Republicans called for an end to unemployment extensions they were called heartless. Next week those same “Heartless Republicans” will be shown to have been correct in the fact that those unemployment extensions are proving to push more States further in debt towards bankruptcy, when President Obama unveils his budget plan.
The administration is proposing short-term relief to the States enhanced debt problems due to Unemployment costs. As we see once again, when the Obama administration says they won’t raise taxes on the middle class it ends up being more smoke and mirrors. There already are taxes being raised on everyone in the form of higher State taxes due to the actions of President Obama’s Democrats in the last four years of total control of Congress. FoxNews.com * reported about this coming to a head in Obama’s budget plan unveiling due next week:
“Rising unemployment has placed such a burden on states that 30 of them owe the federal government $42 billion in money borrowed to meet their unemployment insurance obligations. Three states already have had to raise taxes to begin paying back the money they owe. More than 20 other states likely would have to raise taxes to cover their unemployment insurance debts. Under federal law, such tax increases are automatic once the money owed reaches a certain level.”
Not only is this more irresponsible shuffling of the debt to later years, it is also certain to allow more federal intrusion into State’s Unemployment programs. Bottom line is that when Democrats insisted on extending Unemployment benefits to look like champions for the working class, they have in fact caused a domino effect of tax increases beyond anyone’s ability to calculate. The feds didn’t just “give” this money to the States, it comes with interest charges and also lets the Feds into more of State’s business, as we see alluded to further down in the Fox News article:
” Though the administration could face criticism for enabling states to increase taxes, the thrust of the administration’s argument is that federal taxes would not increase and that the move is fiscally prudent because the federal government ultimately would be repaid at a faster rate than if it did nothing.” (emphasis mine)
When I describe the irresponsible shuffling of this debt to later years, the last paragraph in the Fox News piece confirms it:
” The person who described the plan said only 13 of the 30 states that owe the $42 billion would be expected to repay their share of the money in the next nine years under current conditions. The administration’s proposal would allow 15 more states to repay the money, this person said.”
Only 13 of the 30 States would be expected to repay this in the next 9 years ? Just what is that supposed to mean there? With the recent announcement of the fake Unemployement numbers from this administration, how in the world can anyone gauge when and if this debt will ever be able to be repaid? Unemployment went down to 9% and this administration crowed about it long and loud across the nation. What they failed to tell folks, is that those figures are based on 500,000 people taken out of the workforce total completely, because their unemployment ran out and they aren’t looking for jobs. So in truth we actually have more people without jobs and the ability to earn a living today than they want to tell us . Now we have $42 billion dollars of State unemployment debt that will mandate tax increases on everyone. We have the Democrats to thank for this crushing State debt, and they had the nerve to call Republicans heartless for trying to avoid it. I wonder what other aspects of Democratic Budgetary ignorance will come to light in the President’s budget plan next week? Stay tuned.