WASHINGTON — With the front line of defense for unemployed Americans crumbling, the jobless are facing potentially reduced benefits, and businesses — possibly higher taxes.
So far, 25 states, including California, New York, Texas and Michigan, have run out of unemployment insurance money and have borrowed $24 billion from the federal government — loans that are interest free.
By 2011, 15 more states will have exhausted their jobless trust funds and need $90 billion in loans to keep handing out benefit checks, according to federal projections.
The federal government, however, is already up to its eyeballs in red ink, finishing fiscal year 2009 with an all-time high $1.42 trillion deficit and likely to top that this fiscal year as it extends unemployment benefits.
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Notes:
I want to wish everyone a happy and safe Christmas day. In this home Xmas has been put off for a day so that two missing members of my family can join us later this evening. We’ll open our presents tomorrow morning and a family secret can now be revealed. My eldest daughter and her boyfriend got engaged last night and spent the day with his parents — as they should have.
I highly approve of Kevin and wish the happy couple all the best in the years to come. A fine present to receive at this time of year and well worth the wait as they spend time with his folks before they motor on here.
Stay safe everyone and did I mention?
We have a green Christmas here this year (it’s really weird). Another bonus as the roads are good and travel should be safe. What more can anyone ask for on such a special day?