CNN - Solution to Detroit's jobless: Move

[Supersport]

Well, considering we all have paid into both state and federal taxes our whole life, I don't exactly think one should feel the least bit guilty by getting some of those funds back through unemployment. Just to clear up any misconceptions.

[Det_ard]

Well, considering we all have paid into both state and federal taxes our whole life, I don't exactly think one should feel the least bit guilty by getting some of those funds back through unemployment. Just to clear up any misconceptions.

You're not getting "some of those funds back through unemployment". They're two separate pools of money. You've never paid into unemployment. Your employer has. When you collect, it's charged to them. When people collect more than the employer has put in, their unemployment tax rate is raised. That hurts Michigan businesses. It's not "free money" or "government money", it's money that local businesses have to put out.

It's up to each individual if they want to milk a local business or not, and if they want to feel guilty or not, but at least they ought to have an understanding of where the money comes from. BTW, if an employer's unemployment tax rate goes up to the max 10.3%, don't be surprised when they have to cut back on other compensation-related things like benefits, wages or headcount.