I think that the new Unemployment Compensation extension proposed by obama, should come with an incentive for those drawing that money to find work ASAP.
For the first 6 weeks, they will have pay the lowest tax rate in the IRS code on the money received. The next 6 weeks, that rate will move to the next higher level. The following 6 weeks, the tax liability goes to the next level up. This pattern will continue until that tax rate level matches the highest tax rate that the IRS calls for.
Thoughts?
I believe there’s many people though not by any means all that are happy as can be to be drawing that unemployment instead of working. Something like you suggest may be appropriate.