Payroll Tax Cut and Jobless Benefits?

It appears likely that the payroll tax cut and unemployment benefits will be extended through 2012.  I am wondering if this is good or bad.

I had a client seeking assistance in finding employment who had rejected a job because the pay offered was less than he was receiving from his unemployment check. If a person can earn more money doing nothing than actually working for a pay check, why would the person take a job?

I am concerned because much of the funds used to cover the tax cut and unemployment benefit payments are added directly to our ever growing budget deficit.

I recognize the importance of unemployment pay as a safety net for those who lose their jobs because of no fault of their own.  Further, there are individuals that have tried everything, including the suggestions in my blog, and are still unsuccessful in finding a job.  Nevertheless, how long should these payments continue?  Are they a type of annuity?

What is your opinion about extending unemployment benefits and reducing payroll taxes?  If you have received unemployment benefits, have the payments assisted you in becoming reemployed or have they deferred your job search?

For readers residing outside the United States, are unemployment benefits provided by your country?

Please post your comment here or email me at glynjordan@gmail.com.

         

Thanks.   Glyn