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Anonymous
Anonymous asked in Politics & GovernmentPolitics · 1 decade ago

Should we tax unemployment benefits?

I seem to recall that during the stimulus debate, Republicans tried to make unemployment benefits tax-exempt. The Democrats wouldn't allow the motion to pass.

Do you think it's wise, sensible or ethical to tax unemployment benefits?

24 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    they tax everthing that moves and don't moves, why should unemployment benefits be any different

  • 5 years ago

    It isn't FICA, it is FUTA or SUTA. What this means is that although your spouse earned enough to qualify, some of the employers he worked for were not required to contribute federal or state unemployment tax (FUTA and SUTA respectively). For example, agricultural workers, family businesses, certain government positions, are not required to contribute. It may also be that he worked for an insured employer, but the time he worked was not sufficient to cover him as far as the insurance paid for by the employer. The person he spoke to may have states "payroll taxes", and since FICA is a type of payroll tax, it is to confuse the issue.

  • Anonymous
    1 decade ago

    I think that everyone should pay their own way, and that includes taxes. However, as both my parents are on unemployment, a measly trickle of money that barely sustains our all ready bare-bones spending, I have trouble saying "tax everything equally."

  • 1 decade ago

    To make this country great and eliminate corrupt politicians, there should only be one tax, the Fair Tax. This will tax the end user only, that will allow companies to stay and come to America creating jobs. It will eliminate the IRS and all the corrupt rules established for special interests. It will take the power away from the Politicians and return it to Americans. Last, it will totally eliminate any federal tax on anyone at or below the poverty level.

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  • KARI W
    Lv 4
    1 decade ago

    I'm sure the Obama Administration will find a way to do that. They want to tax everything else in America. After all, our take home pay is considered a "tax loss".

  • 1 decade ago

    Let's see. The government charging taxes on the money it gives out that came from taxes. Does that sound right?

  • ?
    Lv 4
    1 decade ago

    I have only been on unemployment once in my life, thank goodness. It was taxable. I don't really see the point in taxing money you get from the government. I wish tax refunds were not counted as income. We paid taxes on it when we first earned it and taxes again after we get it refunded from the government.

  • 1 decade ago

    You get taxed at the end of the year.

  • Anonymous
    1 decade ago

    Unemployment benefits most certainly ARE NOT handouts.

    They are paid by INSURANCE PREMIUMS from the employers AND the employees.

    Yes, really.

    Every single person who collects UC HAS PAID INTO IT.

    And they ARE taxed.

    Moron.

  • 1 decade ago

    It is taxed on the Federal level, you can choose to have it taken out or pay it all in at the end of the year, it's you choice*******************

  • tybalt
    Lv 4
    1 decade ago

    Did we tax the corporations that got the bailouts?

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