Unemployment, or as the Obama Administration calls it “income security,” saw a huge jump in 2009 as the recession forced states to tap into the federal government to fund their unemployment programs. Despite this huge jump in 2009, “income security” expenses will not decrease by more than 10% over the next five years.
While unemployment costs are expected to decrease over the next five years, most of these decreases are offset by government retirement plans and “other” expenses. First, why aren’t government employees on Social Security? With the massive number of jobs the federal government is creating, how are the taxpayers going to pay for their retirements twenty or thirty years down the road? If Social Security is the solution, I propose all federal employees be solely on that program.
Next, what in the world is going on with $180 billion in “other expenses?” I did a little research on the matter and saw a jump in the “other” section of expenses in 1975. Could this be related to the Employee Retirement Income Security Act of 1974? It could be, however, in researching the topic I could not find what in the bill caused this explosion of costs, with the exception of one possibility.
THE INTERNAL REVENUE SERVICE?
Could the $180 billion refer to the operating expenses of the IRS? A check of the IRS website found that IRS expenses for 2009 were about $15 billion. The only thing I can imagine is that these $180 billion are various pension requirements and tax breaks for organizations that have certain types of pensions set up. If anyone in the readership can find a reference to the “other” segment of income security, please pass this along to me.
THE FUTURE OF “INCOME SECURITY”
The income security expense line has increased from $431 billion in 2008 to $547 billion in 2010 and it is expected to drop to a low in 2012 and continue flat through 2014 at just under $520 billion per year. While the left may argue that we “need” these levels of spending, I believe that the increase is due to the failures of the state unemployment funding models. While this may seem necessary, what isn’t necessary is the government spending $30 per month to give a family $16 per month in food stamp aid. This example is prevalent in this section of the federal budget and will be featured further this May when Common Sense Capitalism debuts its “Welfare in America” series.
Like Medicare, Medicaid, and Social Security, income security is another entitlement wrought with wasteful spending on the dime of the taxpayer.
Income Security as a whole accounts for a $1,484 in liabilities for the average taxpayer in 2010.
From the Obama spending increases, the average taxpayer’s liability has increased by $300 this year and $1,105 through 2014. To date, the Budget BS series has exposed $828 in increased liabilities to the average taxpayer in 2010 and $4,663 through the 2014 budget as a direct result of President Obama’s increased spending.