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Congress Votes to Beef Up Unemployment Trust

Posted By admin || 1-Aug-2009

According to an article in the Star-Telegram , the House is planning to vote on legislation that will beef up the federal unemployment trust so that states will have the money to pay millions of unemployed Americans already receiving unemployment benefits.

The article said:

"The bill provides "such sums as may be necessary" for the federal unemployment trust fund, a pool of money financed by payroll taxes. It backs up state unemployment programs and pays for the nearly 3 million workers now receiving federal extensions of those programs."

Most states offer 26 weeks of unemployment benefits to jobless workers who qualify, which amounts to around $300 per week per person. If the House bill is passed it will ensure that the federal unemployment fund has enough money to fund the extension of the 26 weeks and prevent state unemployment trusts from going bankrupt as the unemployment rate reaches 10 percent.

Ironically enough, money received from the federal government to beef up sagging state unemployment funds may indirectly cause an increase in taxes because they money must be repaid to the federal government. Unfortunately, tax revenues are sagging nationwide and many municipalities are eyeing tax increases to pay for basic services.

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