Yes it's taxable but the fact is she didn't pay into it as you first claimed. The employers pay 6.2 percent on the first 7,000 dollars each employee earns and federal taxes covers the costs of administering UC.
When I see a person bitching about not being able to pay their bills while they sit and watch their big screen tv that tells me the person is a) isn't very bright and b) a parasite looking for a handout.
I think you are the parasite.

So, while employed she was indirectly paying for UE, along with directly paying into federal taxes. While collecting UE she was receiving TAXABLE income. So, really if she actually received help, which she didn't, she helped pay for the help she was receiving. Am I right?
If I work for 20 years, pay my taxes for 20 years, then either receive UE or welfare. Didn't I help pay for that the last 20 years?
So, in reality, this woman helped fund a program that she wasn't even allowed to use. And your problem with this is?