Question

State Unemployment

Do you believe that unemployment benefits should be exempt from income taxes? Explain your answer.

Answer 1

Unemployment is a situation where a person is actively looking for a job but is unable to find one. It is a jobless situation where the economy of a country is not able to provide jobs for all people who are actively searching for job.

The characteristics of unemployment are:-

• It can lead to poverty.
• It can lead to unemployed people engaged in criminal activities for money.
• It can bring over burden on the country's economy.

The government gives many benefits to the unemployed so that they can live an equal status life in par with the employed category.

On a nuetral side, I feel that the benefits given to the unemployed should be tax free, only then a country can support the person without a regular job. The benefits in tax given by the governmentcan boost the morale of such employees and can be considered as great support for them.