Multimillionaires Collecting Millions in Jobless Benefits

With the Republican Study Committee, (think: conservative House members) saying that they still wanted $100 billion in spending reductions as per the GOP's campaign pledges, what will they make of a move to cut unemployment benefits for millionaires? In a written statement explaining why he supports the bill introduced yesterday, Senator Tom Coburn (R-OK) said, "Ending this practice will save nearly $100 million and correct a gross injustice against the millions of Americans who are out of work. Congress should pass this bill without delay. If there was ever a common sense spending cut, this is it."

Unemployment insurance for somebody who earns over $1 million a year? That's right, the way the system currently works, they qualify, too. So the safety net provides for people who pull down a million or two -- or even ten million dollars in a year -- did you know that? Here's the scoop from TheHill.com:

"As many as 2,840 households who have reported an income of $1 million or more on their tax returns were paid a total of $18.6 million in unemployment benefits in 2008, according to Internal Revenue Service figures.

This included more than 800 earning over $2 million and 17 with incomes exceeding $10 million. In all, multimillionaires were paid $5.2 million in jobless benefits..."

Vicki Needham at

Now I don't know about you, but I expect anybody who pulls down a 7-or-8-digit income to have acquired some assets and set some of it aside. If you're having trouble making payments on the Lamborghini or Bugatti maybe you could trade it in for something that gets a little better mileage, like a Lexus hybrid, and stop going to restaurants that don't have prices on the menu, until you get your cash-flow going in a positive direction. Mooching off the government at that level is just plain abusing the system even if it's technically legal - for now.

I applaud U.S. Senators Tom Coburn (R-OK), Mark Udall (D-CO), and Jon Tester (D-MT) for being willing to take on the injustice. I hope this bill passes both houses of Congress swiftly.

Thomas Hayes is an entrepreneur, former Democratic Campaign Manager, strategist, journalist, and photographer who contributes regularly to a host of web sites on topics ranging from economics and politics to culture and community. You can follow him as @kabiu on twitter.