chanel
Silver Member
New Jersey's jobless benefits are too generous and should be reduced, a Republican leader in the Assembly told business owners today.
Residents collecting $550 per week have little incentive to look for a job, Assembly Minority Leader Alex DeCroce told the Business and Industry Association. He said cutting benefits is one way to prop up the unemployment fund, which is now $1.7 billion in the red to the federal government.
"I'm one of the few people here ... who feel that benefits are too good for these people," said DeCroce of Morris County. "Why go to work? If you can go for 26 weeks collecting $550 a week, and you get an extension for another 26, that's close to $27,000 a year or $30,000 a year, and a lot of people figure, 'Why go to work?'"
New Jersey's once-flush unemployment insurance fund was raided of $4.6 billion from 1992 to 2006 to pay for programs other than unemployment claims, according to the governor's office.
Business owners face an automatic unemployment insurance payroll tax increase in July unless something is done. The additional tax could be as high as $400 per employee, said Phil Kirschner of the NJBIA.
N.J. GOP assemblyman suggests reducing jobless benefits as incentive for unemployed to find work | NJ.com
Good question.