No more handouts for idle rich living high off the hog
Sen. Joni Ernst
By U.S. Sen. Joni Ernst
R-Iowa
Our nation’s safety net shouldn’t be strained by subsidizing the lifestyles of the self-sufficient. Yet, too many of the idle rich are living high off the hog, collecting government checks for not working, while at the same time earning a million dollars or more from some other side venture.
Thousands of out-of-work millionaires were paid more than $271 million in unemployment assistance during the first two years of the Biden administration (amounts are from tax years 2021 and 2022, numbers for 2023 and 2024 are not yet available).
Based on an analysis of tax returns from individuals and households reporting incomes of $1 million or more:
• In 2021, 14,972 millionaires collected $213.6 million of unemployment payments, about $14,267 each.
• In 2022, 5,773 millionaires were paid $57.6 million in jobless benefits, nearly $10,000 each.
The million-dollar question is “Why?”
Unemployment compensation is intended to support those who become involuntarily unemployed, presumably with no other source of income. But, a 1964 LBJ Great Society era Department of Labor regulation requires paying unemployment benefits to anyone who loses a job, regardless of other income. This includes those who continue earning millions of dollars.
Because the program is funded primarily by taxing employers, this mandate is effectively a reverse-millionaires tax that takes from overworked small businesses to reward the wealthy who are living well without working.
Able-bodied millionaires shouldn’t expect handouts made possible by the overtaxed and overworked Americans who are running businesses and creating jobs.
That is why I am giving my May 2025 Squeal Award to the out-of-work millionaires, who chose to fill out the form to collect unemployment payments rather than a job application.
Americans widely support Republicans’ proposed work requirements for public assistance, like Medicaid and the Supplemental Nutrition Assistance Program (SNAP or food stamps) for lower income folks, so I’m proposing work, rather than welfare, for the wealthy as well.
My Ending Unemployment Payments to Jobless Millionaires Act ends these freebies for free-loading fat cats by disqualifying anyone making a million dollars or more from being eligible for unemployment income support.
Joni Ernst, a native of Red Oak and a combat veteran, represents Iowa in the United States Senate.
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2020 As Well
In 2020 unemployment was opened up for self employed due to the Covid 19 virus. Many professionals were eligible regardless of net worth. I knew several who I personally knew with millions in real estate assets. The laws passed should have had a net worth test. The problem is how would it be audited. Federal income tax returns for three years before would have been feasible. However, lawmakers are never smart enough to add in basic controls. The proof is in the wasteful spending in reports issued by the General Accounting Office.