Unemployment compensation has been a benefit available to most American workers for many decades. This benefit is provided though a combination of State and Federal programs. Funding for these programs comes from taxes paid by businesses on their payrolls. Discussion and debate has been on going regarding the level of benefits that should be paid, the length of time that these benefits should be paid, and the relative economic benefit that the payments ultimately have.

Please comment on unemployment benefits, unemployment taxes and related matters by considering the following questions:

1. research situations where the unemployment benefit system has benefited someone, or a situation where it has been abused by someone, please describe the situation.

2. Give an opinion as to why the situation was either beneficial or abusive. Suggest ways that the system could have worked in order to catch the people who were taking advantage of the situation.

3. Discuss whether the taxes paid by businesses are excessive (consider the % required and the level of payroll that is taxed). Do these taxes help encourage or discourage businesses from locating in our state?