Staff Reports
In 2021, during the pandemic, even as the country began to recover, some people were taking advantage of the generosity of the government. More than 300 individuals who made at least $10 million in income that year were found to have collected unemployment benefits, and nearly 15,000 mega-millionaire taxpayers, who earned at least $1 million in that year alone, also cashed in on government-funded jobless benefits. The IRS reported that this exclusive club of million-dollar earners received nearly half a billion dollars in unemployment benefits in 2020 and 2021.
They earned more than a million dollars — and still took unemploymenthttps://t.co/rORmvHFRny pic.twitter.com/3cEQwcN3ks
— The Washington Times (@WashTimes) December 15, 2023
Senator Joni Ernst, a Republican from Iowa, denounced this as “welfare for the well-off” and called for an end to this abuse of the system. She argued that it was outrageous for hardworking Americans living paycheck to paycheck to foot the bill for idle millionaires who should have been financially secure even without these benefits.
The federal-state partnership known as Unemployment Insurance was designed to provide vital support for those who lost their jobs through no fault of their own. However, the unprecedented circumstances of the pandemic led to a surge in the number of beneficiaries and the average payout. While the system is supposed to be a safety net for those in need, it was exploited by some who were clearly not in need.
The sheer audacity of millionaires taking advantage of unemployment benefits has drawn widespread criticism, with concerns raised about the fairness and sustainability of the system. Additionally, the idea that millionaires might have paid into the unemployment system for years and were therefore entitled to claim benefits during difficult times has been met with skepticism. In fact, attempts to restrict or tax these benefits for high-income earners have repeatedly faltered in Congress. Senator Ernst has taken a firm stand against this abuse, introducing legislation to remove thousands of millionaires from the public dole and urging them to focus on finding gainful employment.
Ultimately, the revelation that individuals with immense wealth were tapping into unemployment benefits meant for those facing genuine financial hardships has sparked outrage and renewed calls for reforming the system to ensure that it truly serves those in need.
