Some 3,000 Millionaires Claim Jobless Benefits, IRS Data Show

[thundley4]

After the economy slipped into recession in 2008, millions of Americans received unemployment benefits to make ends meet -- including almost 3,000 millionaires.

According to U.S. Internal Revenue Service data, 2,840 households reporting at least $1 million in income on their tax returns that year also collected a total of $18.6 million in jobless aid. They included 806 taxpayers with incomes over $2 million and 17 with incomes in excess of $10 million. In all, multimillionaires reported receiving $5.2 million in jobless benefits.

Those numbers are a minuscule fraction of the 9.5 million taxpayers who reported receiving $43.7 billion from jobless benefits in 2008, up from 7.6 million recipients reporting $29.4 billion in benefits in 2007. Still, economists said they are surprised so many people with seven-figure incomes claimed benefits.

“It’s a larger number than I would have expected,” said Alan Viard, resident scholar at the American Enterprise Institute, a Washington research organization. “But, people at any income level can lose their jobs.”

The first 26 weeks of unemployment benefits are paid by states. Nationally, benefits average about $300 per week. Because unemployment benefits are insurance, funded with taxes paid by employers, the program isn’t need-based like welfare. A millionaire who loses his or her job is entitled to benefits the same as a laid-off factory or restaurant worker, Viard said.

Bloomberg

I dunno, this bugs me even though it is a form of "insurance" and not welfare.

[Thor]

Perhaps they need to start "means testing"  before they arbitrarily hand out benefits ?? The VA does it for their veterans. Seriously, wile they may be entitled, if I had a million dollars in the bank, I'd probably not even apply. That said,if their money was tied up in investments and land, I dunno.... Sometimes it's difficult to liquidate some assets.

[thundley4]

Perhaps they need to start "means testing"  before they arbitrarily hand out benefits ?? The VA does it for their veterans. Seriously, wile they may be entitled, if I had a million dollars in the bank, I'd probably not even apply. That said,if their money was tied up in investments and land, I dunno.... Sometimes it's difficult to liquidate some assets.

It could be that some are cases like "the millionaire next door", nice house(s), nice cars and investment, but not much liquidity.

[IassaFTots]

SUI tax is paid by the employer for all employees, regardless of what salary range they are at, or how much they have in the bank.  I probably wouldn't file if I had millions, but I should be able to. 

[Thor]

It could be that some are cases like "the millionaire next door", nice house(s), nice cars and investment, but not much liquidity.

Yep, that's a possibility. I dunno, I'm kind of mixed. While the employer does contribute a good amount, us taxpayers also contribute a fair amount. There's good and bad on both sides of the argument.

[DumbAss Tanker]

Hey, the Stimupork Bill gave millionaires a hundred times that.

[SSG Snuggle Bunny]

If your taxes pay for the benefit you should be allowed to use it.

Everyone should be seen as equal under the law.

[IassaFTots]

If your taxes pay for the benefit you should be allowed to use it.

Everyone should be seen as equal under the law.

A-yup.   

[thundley4]

This caught me totally off-guard . A majority of the DUmmies who have replied in the thread think the millionaires should be able to claim it also.

[Ptarmigan]

There are lot of millionaires who are likely broke and in debt. Income and wealth are two different things. Income is how much money is made. Wealth is how much assets they are worth. Income and wealth is related, but not always the case. Many people regardless of income live paycheck to paycheck.