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

[kpete]

Source: Bloomberg

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.”

Read more: http://www.bloomberg.com/news/2010-10-01/almost-3-000-millionaires-claimed-jobless-benefits-in-2008-irs-data-show.html

[Warpy]

1. And a million aint what it used to be

That million might be tied up in home equity or other real property and good luck trying to access any of it to tide you over a year or two of unemployment in this market.

Living on unemployment checks sucks, people. I can't think of anyone who likes it much, although some of us have made the best of it when it happened to us, taking the time to learn new skills courtesy of the public library. Working sucks, too, but at least you're compensated for it to the point there's a little left over after you pay the bills. Unemployment doesn't even do a good job of paying the damn bills.

[Gormy Cuss]

6. It was reported income, not assets.

You have a valid point on wealth tied up in assets, but these recipients were in households reporting over 1M in income.

Unemployment claims were made because they are entitled to the benefit, same as they will be eventually entitled to Social Security and Medicare. I'd bet that to a person these millionaire UI benefits recipients also rail against UI, SS, and Medicare programs to boot.

[pattmarty]

8. Read the piece again. "One million in income", doesn't mean..........

.......houses or cars. It MEANS income.

[RedCloud]

9. off with their head should be the "outcome"

[pattmarty]

11. I don't begrudge them if they are LEGALLY entitled to it (like SS)...........

.........What I don't like is that they are against the "rabble" and "little people" from sitting on their asses smoking pot and drinking wine, THAT'S what pisses me off. The old "hooray for me, fuck you" syndrome.

[No Elephants]

18. I begrudge that they are legally entitled. Please see Reply 17.

[backwoodsbob]

20. you are advocating the murder of millionaires?

I don't think so

[No Elephants]

21. Overly literal. I usually am as well.

[TreasonousBastard]

2. How's this "breaking" when it was posted a half hour ago?...

(Does anybody actually read this site, or just race to post?)

[uppityperson]

16. It was posted in GD, not LBN, different forums.

snark removed

[No Elephants]

22. A news story that is 12 hours old or less is "breaking" for LBN purposes.

[progressoid]

3. Welfare Queens.

[rucky]

4. They should be excited about their tax cut this year.

[robcon]

5. I don't have any problem with this.

There are no exclusions, and there shouldn't be, to unemployment benefits.

[Hamlette]

15. there should be personal exlucsions

I lost two jobs in my life and both times I would have qualified for unemployment benefits but I did not file. The reason was, at the time, I was lucky enough to not need them because my husband had a good job.

In all but 2 states, unemployment benefits are 100% paid for by employers. I see social security as different as I paid 50% of my social security.

That being said, if income was considered in receipt of unemployment it was be a disaster. The state shouldn't decide based on income but the freaking millionaires should.

[No Elephants]

17. Meh. I have zero problems excluding people making a million a year from unemployment

and Social Security, just as they are already by law very rightly excluded from welfare and Medicaid.

Government programs should be societal safety nets, so street cleaners don't get slowed down by corpses of folks who have died of hunger or exposure bc they couldn't afford food and shelter.

With obvious exceptions, such as govt workers, tax refunds and the like, society should not be in the business of giving folks money for any other reason, especially money the recipient will barely notice, if at all.

that the only time cons insist on government handouts seems to be when the recipicients are rich is utterly predictable and quite laughable, tho' others might say disgusting.

[Lucky Luciano]

30. totally disagree - you pay into it just like SS - you are entitled to it

if you lose your job no matter how much you make.

[boppers]

33. If you're making a million a year, you don't need a job.

Jobs are actually hobbies for people like this, not employment.

[Lucky Luciano]

37. Not if it is a one shot deal.

Those who make $1MM in one particular year don't necessarily do so consistently. If someone had made $1MM 10 years running, then that may be different. I guess they should not have to pay the unemployment tax since they will not get anything for it.

[rrneck]

7. Make 'em work for it...

[SnakeEyes]

10. they already did

[Lochloosa]

12. +1

[snappyturtle]

13. Yes, you are right and I think it's been pointed out that the millionaires

are justly entitled to unemployment benefits. HOWEVER, one million annual income, I'm assuming gross income, means a weekly gross of over nineteen thousand dollars. It's just a matter of principle. But, like you say, they're entitled and probably also the first on the list to be against entitlements....especially to lower income workers. oh well.

[No Elephants]

25. People with $1 million in annual income are currently LEGALLY entitled to unemployment benefits,

not justly entitled. They're entitled only bc some jackasses in the American plutonomy passed a law saying so. The law should be changed. NOW.

Nothing about it is just, or even sane, especially when benefits are not enough for people who actually need them to live on and we are cutting off people after 99 weeks, even though we are not also offering them jobs or bringing jobs back from other countries. And we have "reformed" welfare too.

So what safety net does, say, a single, healthy man of 25 to 55 or so really have? Shelters are overflowing and have been for decades. Homelessness? Soup kitchens? A life of crime?

Please see also Reply ##s 17 and 19.

[snappyturtle]

32. Whoa! I am not one bit happy with the situation....however, the law

is the law is the law. I guess you didn't read between my lines or I didn't make myself clear...sorry because I do really agree with what you've said.

[rrneck]

14. Maybe...

Of course my post was sarcastic snark, but I wonder how many of those whose income is 1mil plus are Horatio Alger stories come to life and how many got their start the old fashioned way - through inheritance and family connections?

I personally know an accountant who has recommended unemployment payments for people who didn't need the money but who qualified for it. Horatio Alger would not recognize them.

[No Elephants]

19. Not really. However, they did work for the money removed from their paychecks

as income tax withholding, that goes for roads, defense, welfare, and other things besides back to their own wallets in the form of cash. So what? That's the price of living and working in a society. Has been for a very long time. Please see also, Reply 17.

(mind: I've worked all my life and never once collected unemployment, even when I was the only employee of my own corporation and paying into unemployment as employer. The corp's Pres (also me) could have laid me off when work was slow, so I could collect, but she (me) never did.

[Yo_Mama]

23. The income might have been one-time

If you sell a house or a business, some middle-income folks have a one-year hike in income. It doesn't mean they normally receive that type of income.

Most people seem to think of income in terms of annual earnings, but many small business owners and even persons who sell houses in some areas they bought long ago can find themselves with that reported income. There are usually tax exclusions, but still they have the income.

A surprising number of the "rich" households fall into this category of "being rich one year". So it is not surprising. A lot of people went bust, lost businesses, and may have sold assets.

[prolesunited]

26. That's not how unemployment is calculated

It's based on wages for employment over a period longer than a year and recalculated quarterly.

[No Elephants]

28. Different issue. S/he's simply saying that, while the OP may sound as

though people who make a million a year every year are collecting unemployment, that is not necessarily so. S/he's saying nothing at all about how unemployment is calculated.

[No Elephants]

27. Many ways a law limiting benefits to the very rich could work around a one time event, especially .

a liquidation of personal or business assets. (and only profit is income) You could, just for some examples, just disregard all or part or that income, and/or you could average all or part of it over five or ten years. And consider only after tax income, bc you can't pay for food or rent with money you mailed the IRS.

As for sale of a home, first, you would exclude the cost of the house and of all capital (capitol?) improvements you've made. Then, you have, I think, two years to turn the profit into another residence. So, while selling a house for a million is not jawdropping nowadays, realizing a million in reportable income from sale of a house is still unusual.

[mainer]

24. Some of these are two-earner families.

Say, the husband is a million-income banker. And the wife is a school teacher who just got laid off. She collects the unemployment, he doesn't.

[No Elephants]

29. So? The only issue raised by the OP, IMO, is whether the law should

change. IMO, neither spouse in a family with combined income of $1 million a year should get unemployement benefits. For my reasons, please see my Reply ##'s 17, 18 and 25.

[mainer]

31. Should a millionaire whose house burns down get nothing

If he paid insurance premiums for years? Should a millionaire who's paid premiums for health insurance get no medical coverage when he gets sick? I think that's the better analogy for unemployment insurance. It's not charity. It's insurance.

[boppers]

34. Should a millionaire whose house doesn't burn down get something they don't need?

"It's not charity. It's insurance."

That, I believe, is the crux of the debate, whether unemployment is supposed to be a safety net for the unfortunate, or an entitlement to all regardless of their situation.

So, since you mentioned insurance, do those in high-risk fields pay a greater premium?
Can the insurance company cancel people who abuse the policy?

[mainer]

41. If his house doesn't burn down, he doesn't need it.

Your analogy doesn't make sense.

The definition of unemployment is pretty clearcut. Your employer fires you or lays you off. Maybe your investment income (or your spouse's income) means you still have a ton of money coming in, but you've still qualified as unemployed.

And yes, your premiums generally reflect what you can expect in benefits. Someone who pays cadillac health insurance rates can expect more health care needs will be covered.

[Synicus Maximus]

40. What if the family has a combined income of $750000, should

they get unemployment? How about $500000 or $300000

[Warren Stupidity]

35. unemployment compensation is not means tested and should not be

all of you arguing that it should be means tested are arguing for changing the system from an insurance program - you pay in and if you lose your job you file a claim and get compensation - to a means tested welfare system. That 'means testing', as it would for SS, will primarily affect the middle class and destroy political support for the system.

The plutocracy would love to make all of the universal new deal social programs means tested welfare programs.

[Codeine]

36. They should be careful what they wish for. nt

[Francesca9]

38. It is easy to earn a million if laid off

1. Put $250 a month into your 401k for 25 years.

2. Get laid off and start collecting unemployment.

3. Borrow from your 401k

4. Not be able to pay it back.

5. Get a check for your entire 401k, minus a 10% penalty, and have it all be fully taxable.

[hedgehog]

39. In New York State, at least, unemployment benefits are a

based on your income top be less than your normal net, and the maximum amount used to be under $400 a week. The millionaires may be getting unemployment, but they aren't getting much.

[mainer]

42. If you couldn't be assured you'd get benefits...

why on earth would anyone pay insurance premiums? Why would you pay into Social Security if the government might deny you future benefits? Why would you pay for fire insurance if there's a chance you'd never get reimbursed?

There has to be some certainty of coverage, otherwise NO ONE would buy insurance.