WTF?: Bill would allow states to stop long-term jobless benefits to pay off Federal loans

from the Detroit News:



Washington — States would have the option to stop long-term benefits for laid-off workers and use the money to pay off federal loans for the benefits under legislation debated today in the House Ways and Means Committee.

States also could use the federal extended unemployment money to pay for federal tax hikes on businesses or to start job creation programs. The amount of money states get from Washington under the program won't be cut. Michigan will get $1.3 billion this year. The total nationally is $31 billion.

As a result of the prolonged recession, 29 states owe the federal government a total of $41.2 billion in outstanding loans for unemployment benefits. Michigan, which held the highest unemployment rate in the nation for nearly four years, owes nearly $3.2 billion and must start paying the bill Sept. 30.

The longer a state holds the debt, the higher the federal unemployment tax rate on businesses increases. Employers in 22 states will see their federal unemployment taxes go up this year. In Michigan, federal unemployment taxes on employers increases from .8 percent to 1.7 percent, according to Ways and Means Republicans. ..................(more)

The complete piece: http://detnews.com/article/20110511/BIZ/105110399/Bill-gives-states-option-to-stop-long-term-jobless-benefits-to-pay-off-federal-loans#ixzz1M45VRzU7

and come back. I doubt there's any sense to be had, but I'll try.