Let’s Tax People Who Lose Their Jobs

Apr 5, 2009 by winjaw

Why are unemployment benefits taxed?

I realize you can defer those taxes, but you will eventually have to pay them. So why should the state and federal government take taxes from people who’ve lost their jobs?

It’s not like that unemployment check is going to even pay your mortgage or COBRA, but seriously, what’s the point?

And while we’re on this whole tax subject, what’s up with taxing severance pay?

Seriously, some guy loses his job or takes a buyout and gets a severance package. What happens?  Our government ends up taking some absurd amount – 30-40 percent maybe.
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Why should the government get any of this money? This is money some former employee will need to pay the bills, keep food on the table, figure out how to pay for medical insurance.

So the government takes a huge chunk out of some guy’s severance, which means unless he doesn’t get a new job quick, he’s probably going to have to hit the government up for assistance.

Taking part of some guy’s severance just lessens the amount of time that individual has to get back on his/her feet on their own.

What am I missing?