Checks put money to work
Because of Republican objections that the extension of unemployment benefits will add to the national debt, the checks are being delayed.
What the Republicans are not telling the public is how much the loss of this small weekly income to millions of people will cost both state and federal governments:
• Unemployment payments are taxable as income under both federal and many state laws; that means a loss of tax revenue.
• Many of these people will be forced to reduce their purchases of necessary everyday items; that brings a loss of sales tax and excise tax revenue.
• Many will reduce their purchase of gasoline and some will lose their cars; another loss of tax revenue.
• Some will lose their homes — a loss of property tax revenue.
• Many will have to file for welfare, food stamps and medical assistance to live and feed their families, increasing the state and federal budget debt.
• Some may turn to crime, adding to state and federal operational costs.
• The loss of this spending in our economy will cause many businesses to reduce their employee staff and add to the level of unemployment.
What is the estimated cost for all of the above compared to the estimated cost of extending unemployment benefits? Both are an addition to state and federal debt and a burden on the economy, but which one is greater?
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