Quote:
Originally Posted by Ignitionnet
If higher earners are less likely to claim it there's less need to tax them highly as they are a lower 'risk'.
Taxes aren't higher in Canada with this and compulsory health insurance, single payer, contributions ring fenced directly from payroll taxes.
|
The way I understand this works (in Europe anyway) is that you pay a fixed percentage of your salary towards insurance for unemployment. This means that higher earners will contribute more, but are less likely to claim, thereby subsidising lower earners. I don't object to this (being a higher earner), but I can see how some would. Incidentally, the way this works (or worked) in Holland is that you get 80% of your salary for a year, then 60% for another year, which seems a bit more costly than the Canadian example.