A bipartisan group of lawmakers from the House and Senate on Thursday introduced legislation to prevent millionaires from taking unemployment checks.

Um, how isn’t this a thing already? (Millionaire=people who earn $1M yearly)
Sorry for Fox News, but it’s the best source with this headline and it says it’s bipartisan so we should probably be good.

  • techwooded@lemmy.caEnglish
    553·
    11 months ago

    Would just like to pop in here and say that terms like “millionaires” and “billionaires” typically refer to net worth/wealth, not income. This is why Jeff Bezos was able to claim some of the federal COVID aide because, despite being a multi-billionaire, his income in that year was below the threshold (I think it was sub-$100k) as income from investments didn’t qualify under the structure of the plan.

    While I don’t necessarily disagree with the sentiment of people whose net worths are upwards of a million being able to claim unemployment, actually calculating net worth is extremely difficult to do, especially among the wealthy. That would put an unreasonable burden on the unemployment benefit system that would probably end up costing more in administrative costs than the money saved by not including to the ultra-wealthy in the benefit. Preventing the latter is the main benefit of universal programs

    • ChickenLadyLovesLife@lemmy.worldEnglish
      81·
      11 months ago

      actually calculating net worth is extremely difficult to do, especially among the wealthy.

      Even among the non-wealthy. For example, you might have some guy who has essentially no savings but who worked for an auto manufacturer and has a pension coming, compared to another guy who has a million dollars in his 401K but the annual income from that would be less than the first guy’s pension.

      • JamesFire@lemmy.worldEnglish
        2·
        11 months ago

        And then how do you enforce that without calculating net worth? Just let people self-report with no verification?

        • Katana314@lemmy.worldEnglish
          22·
          11 months ago

          I don’t think it necessarily needs active enforcement. It can be as simple as:

          Richy Rich: “So I claimed unemployment during my taxes, and no one stopped me! Bwa ha ha!”
          Moralistic Auditor: “Wait…you did?? That’s illegal! Screw it, I always hated you, I’m going to report you to the IRS!”
          IRS: “We’ve discovered you incorrectly claimed unemployment, thanks to an anonymous tip and brief investigation. Your punitive taxes have been quintupled.”

          You wouldn’t always catch everyone; that’s fine, as long as the cost of abusers is not outweighed by the savings of not verifying everyone.

          • techwooded@lemmy.caEnglish
            2·
            11 months ago

            Main problem with this is that unemployment isn’t handled by the IRS, it’s a program under the Department of Labor and administered by the States and federal agencies notoriously don’t talk to each other.

            There’s also nothing wrong with just giving them unemployment benefits, but you structure your tax system so that the rich people, when they end up needing to claim unemployment, are paying more or equivalent in taxes paying into unemployment than they’re getting in the payout. You simplify both sets of laws, the IRS is in charge of collecting revenue and the subdepartment of Labor tasked with this only has to worry about dishing out your cash so the administration of the benefit is simplified, and you still get your desired result of exceedingly well off people not “dragging” the system