The Economic Impact of Income Taxes

by Michael on Mar 1, 2013 · 3 comments

In honor of Sequestration Day I thought I’d highlight the results of a recent study from the Institute of Taxation and Economic Policy. As I’m sure you’re aware, there’s pressure in a number of states to reduce or abolish personal income taxes. In general, the argument in favor of doing […]

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HSA After Leaving Job

by Michael on Jan 23, 2013 · 2 comments

A reader recently wrote in with a question about what to do with your health savings account (HSA) after leaving your job. The answer here is… It depends. Consider your options and don’t make any rash decisions. For starters, the money in the HSA is yours, and it’s portable. You’re […]

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Education and Unemployment

by Michael on Jan 7, 2013 · 1 comment

While reading the latest unemployment report from the Bureau of Labor Statistics (BLS), I was struck by the apparent relationship between education and unemployment rates. At tail end of 2012, the overall unemployment rate stood at 7.8%, but it actually varied quite widely across educational levels. What follows are the […]

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Interest Rates and Unemployment

by Michael on Dec 13, 2012 · 2 comments

At long last, the Federal Reserve has finally given us a better indication of when we might expect interest rates to start to rise. As long as inflation remains low, we can expect the Fed to work to keep interest rates near zero at least until unemployment drops below 6.5%, […]

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Are Unemployment Benefits Taxable?

by Michael on Oct 9, 2012 · 1 comment

Yesterday I looked at who ultimately pays for unemployment benefits. Today I’ll be looking at the tax treatment of unemployment benefits. Are unemployment benefits subject to income tax? The short answer is that, yes, such payments are indeed taxable. For a slightly longer and more detailed answer, we have to […]

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Who Pays for Unemployment Benefits?

by Michael on Oct 8, 2012

With the unemployment rate in the news, I thought I’d take a closer look at who actually pays for unemployment compensation. In general terms, unemployment benefits are paid through the Unemployment Insurance program, which is jointly administered between the federal and state governments. Unemployment insurance is funded through employer-paid federal […]

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