Not surprisingly, most states collect the full amount that would otherwise be taxed under federal law, and the federal revenues from FUTA are not high. It contributes a small percentage to the states to fund payments during their basic unemployment period, which varies from 12 to 26 weeks. The extended benefits program was put into place in the mid-1980s, when large layoffs and difficult job searches were making the news. Both President Bush and President Clinton have kept the program alive since, not surprisingly, it is extremely popular with the voting public. Con Anyone who has ever left a job involuntarily understands the value of unemployment benefits during the difficult job-hunting period.
Unemployment benefits lengthen the time people spend between jobs.
Unemployment benefits are paid for largely by taxes on employers. Should they be entirely employer-supported, or is it a good way to spend taxpayers' money. Department of Health and Human Services . Department of Labor . Empowerment Zone and Enterprise Community Program .