Finally there is a presidential candidate that is a true believer in family values and a role model in preaching how you should live your life. That candidate is John Edwards. His admirable press conference with his ailing wife, who is terminally ill with cancer, was a refreshing example of what real moral values are all about.
It’s unfortunate that moral/family values have been co-opted by a bunch of strident and virulent charlatans on the right who don’t even have their own values in order. Whether it’s Newt Gingrich hypocritically lambasting Bill Clinton’s extramarital affair while having one on his own, Ann Coulter calling Edwards a faggot to rounds of applause, or the slew of firebrand theocrats that are destroying the Republican party by using religion to divide and spread prejudice in our country, it is clear that morality does not equal ethics with this motley crew.
Some people will say Edwards should quit the campaign to attend to his wife, and that is certainly a valid point. But they jointly said they want to soldier on and not let her illness stop their campaign, and that is their decision. Best of luck and to them, along with thanks for reminding all of us what true values are.
Friday, March 23, 2007
Wednesday, March 14, 2007
In Massachusetts, Not Working Can Pay Off
Like many Massachusetts white collar workers, I had the misfortune of being downsized a few years ago through no fault of my own. But there was a silver lining – I collected more money while unemployed than I did as a salaried worker. And it was all completely legal.
While new Governor Deval Patrick is looking for ways to close corporate tax loopholes and adjust massive corporate subsidies to help benefit the Commonwealth, he can also look for ways to adjust state spending in ways that will also benefit society. And one of those is in the way Massachusetts assists its unemployed residents. Now I’m not calling for an end to unemployment – I was very happy to get those checks and the state should be of assistance to people trying to find new jobs. But there are massive plugs in the system as people get paid who don’t need, or deserve, to get it.
First, take yours truly. When I was laid off, I got a decent severance package in exchange for signing a legal document not to sue my former employer. It’s a scam, but you gotta sign it if you want your severance. Well according to Massachusetts employment law, signing that qualifies you to full unemployment benefits while you're still getting your severance. So you can collect an unemployment check AND get your severance until it runs out. You’re getting more money for not working. Nobody is going to refuse free money, and I’m betting it’s mainly going into the pockets of skilled, white collar workers who can get a new job easily and do without the money fairly quickly.
Does your job depend on the weather? Roofers can legally collect unemployment during the winter and ski instructors can collect in the summer. If you own your own business or are self-employed in a tourist-driven location like Martha’s Vineyard, you can lay yourself off in the off-season and legally collect unemployment. The state’s Division of Unemployment Assistance calls people like this “frequent fliers” because they have legally collecting unemployment while employed for several decades.
Here’s another problem. How much you get in unemployment benefits is based on your salary before you got laid off (plus an additional stipend for every child). That means the white collar executive who makes $100,000 collects more than the blue collar guy who makes $35,000, even though the blue collar guy probably needs the money more. And I’ll bet the executive got a nice severance package as well and is more skilled to find a new job faster.
Moreover, unemployment taxes only apply to the first $14,000 of taxable wages, so the executive’s company (and his future company) is taxed proportionally less than the blue collar guy’s previous and future company. Unemployment insurance is one place where Massachusetts is still “Taxachusetts.” Massachusetts businesses pay $637 per employee in unemployment insurance, while the national average is $315. Since this is unfairly biased toward smaller businesses, these taxes – along with the rampant abuse and high unemployment benefits paid to workers who either don’t need or don’t deserve them – are a large part of what is causing the current exodus of middle class workers and the businesses that employ them from the state. And it’s also causing many businesses who can afford the high cost of unemployment insurance, such as Fidelity and Staples, to find new jobs outside Massachusetts as well.
I am not advocating ending unemployment checks. It is a necessary benefit for people who are between jobs. But if Governor Patrick is serious about easing the fiscal burden of doing business in Massachusetts with both the state and its businesses, he needs to get the Commonwealth’s eligibility requirements, benefits and tax burden to close the loopholes. This would best help people who need the money most and end the widespread abuse of the system.
More Info:
Mixed Benefits – A fantastic article on abuse in the unemployment industry by the former director of the Division of Unemployment Assistance. I got most of the figures from this story.
NFIB Call to Action – A small business trade group details how the current unemployment benefit system is strangling small businesses in Massachusetts.
While new Governor Deval Patrick is looking for ways to close corporate tax loopholes and adjust massive corporate subsidies to help benefit the Commonwealth, he can also look for ways to adjust state spending in ways that will also benefit society. And one of those is in the way Massachusetts assists its unemployed residents. Now I’m not calling for an end to unemployment – I was very happy to get those checks and the state should be of assistance to people trying to find new jobs. But there are massive plugs in the system as people get paid who don’t need, or deserve, to get it.
First, take yours truly. When I was laid off, I got a decent severance package in exchange for signing a legal document not to sue my former employer. It’s a scam, but you gotta sign it if you want your severance. Well according to Massachusetts employment law, signing that qualifies you to full unemployment benefits while you're still getting your severance. So you can collect an unemployment check AND get your severance until it runs out. You’re getting more money for not working. Nobody is going to refuse free money, and I’m betting it’s mainly going into the pockets of skilled, white collar workers who can get a new job easily and do without the money fairly quickly.
Does your job depend on the weather? Roofers can legally collect unemployment during the winter and ski instructors can collect in the summer. If you own your own business or are self-employed in a tourist-driven location like Martha’s Vineyard, you can lay yourself off in the off-season and legally collect unemployment. The state’s Division of Unemployment Assistance calls people like this “frequent fliers” because they have legally collecting unemployment while employed for several decades.
Here’s another problem. How much you get in unemployment benefits is based on your salary before you got laid off (plus an additional stipend for every child). That means the white collar executive who makes $100,000 collects more than the blue collar guy who makes $35,000, even though the blue collar guy probably needs the money more. And I’ll bet the executive got a nice severance package as well and is more skilled to find a new job faster.
Moreover, unemployment taxes only apply to the first $14,000 of taxable wages, so the executive’s company (and his future company) is taxed proportionally less than the blue collar guy’s previous and future company. Unemployment insurance is one place where Massachusetts is still “Taxachusetts.” Massachusetts businesses pay $637 per employee in unemployment insurance, while the national average is $315. Since this is unfairly biased toward smaller businesses, these taxes – along with the rampant abuse and high unemployment benefits paid to workers who either don’t need or don’t deserve them – are a large part of what is causing the current exodus of middle class workers and the businesses that employ them from the state. And it’s also causing many businesses who can afford the high cost of unemployment insurance, such as Fidelity and Staples, to find new jobs outside Massachusetts as well.
I am not advocating ending unemployment checks. It is a necessary benefit for people who are between jobs. But if Governor Patrick is serious about easing the fiscal burden of doing business in Massachusetts with both the state and its businesses, he needs to get the Commonwealth’s eligibility requirements, benefits and tax burden to close the loopholes. This would best help people who need the money most and end the widespread abuse of the system.
More Info:
Mixed Benefits – A fantastic article on abuse in the unemployment industry by the former director of the Division of Unemployment Assistance. I got most of the figures from this story.
NFIB Call to Action – A small business trade group details how the current unemployment benefit system is strangling small businesses in Massachusetts.
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