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Home Court filings Bofa Ca Unemployment In re: Bank of America California Unemployment Benefits Litigation — S.D. Cal., No. 21-md-02992 Exhibit 83 — In re Bank of America California Unemployment Benefits Litigation (Dkt. 350-84, S.D. Cal. No. 3:21-md-02992)

Court filing

Exhibit 83 — In re Bank of America California Unemployment Benefits Litigation (Dkt. 350-84, S.D. Cal. No. 3:21-md-02992)

Filed October 24, 2024 in In re Bank of America California Unemployment Benefits Litigation; one of 1415 filings from this case.

Record facts

CourtU.S. District Court for the Southern District of California
Filed2024-10-24

U.S. District Court for the Southern District of California · No. 3:21-md-02992-GPC-MSB · Doc. 350-84 · 2024-10-24 · Docket on CourtListener

Full text

EXHIBIT 83 
Case 3:21-md-02992-GPC-MSB     Document 350-84     Filed 10/24/24     PageID.11521 
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FINANCE
Unemployment assistance to millionaires soared during pandemic
Expanded benefits to stave off an economic disaster may be part of the reason.
Millionaires received an average of $13,900 in benefits, according to the figures. | Elise Amendola/AP Photo
By BRIAN FALER
11/22/2022 11:27 AM EST
Some of the nation’s wealthiest people were among the tens of millions of
Americans who received unemployment checks in the wake of the coronavirus
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Case 3:21-md-02992-GPC-MSB     Document 350-84     Filed 10/24/24     PageID.11522 
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outbreak.
More than 19,000 people who made at least $1 million in 2020 also collected
jobless assistance that year, new IRS data show. That included 4,500 people
who earned between $5 million and $10 million and 229 people with eight-
figure incomes or more.
Millionaires received an average of $13,900 in benefits, according to the
figures.
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Experts cited a number of reasons for the seeming anomaly, including
expanded benefits approved by Congress to fend off an economic collapse amid
widespread layoffs and business shutdowns.
“Tens of millions of workers were thrown out of their jobs in 2020 and it was a
really wide range of people — it included people who had been making really
good incomes,” said Amy M. Traub, senior researcher of social insurance at the
National Employment Law Project.
It’s a small, though surprising, share of the nearly 30 million tax returns that
reported receiving unemployment aid that year.
The figures were included in a trove of data released by the IRS, though the
department doesn’t say how people made enough money to put them in the top
1 percent of incomes — $591,000 in 2020 — while collecting unemployment
aid in the same year.
Probably some of those receiving aid had more typical earnings but were
married to highly paid people with whom they filed their taxes jointly, experts
speculated. It may also include small business owners made eligible for
assistance for the first time that year.
“A bunch of places just shut down,” said Mark Mazur, a former top Biden
administration tax official. “People were told they should file for
unemployment and they did, and the states generally made it pretty easy.”
“You’d think the millionaires who had that opportunity would be among the
most well-advised people.”
The figures also show how the total number of people receiving unemployment
checks exploded in the wake of the pandemic, dwarfing what was seen in the
Great Recession.
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Approximately 29.9 million returns reported jobless benefits that year — a 585
percent increase from 2019. Aggregate benefits reported amounted to $405
billion, a 1,794 percent increase.
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In 2009, amid the Great Recession, 11.3 million returns reported jobless
benefits.
Unemployment skyrocketed in the early months of the pandemic, amid stay-at-
home orders and overnight business shutdowns. By April, the jobless rate had
more than quadrupled to 14.7 percent.
Congress approved a big expansion of unemployment aid that increased how
much people could receive, how long they could receive it and expanded the
number of people who could qualify to include the self-employed, independent
contractors, gig workers and others.
The aid is credited with not only helping people stay afloat but preventing a
deeper economic downturn.
Benefits are available to people regardless of how much they earn — it is a type
of insurance, not a traditional government benefit program. Aid is financed
though federal and state taxes imposed on employers.
“Unemployment insurance is intended to be a support for workers who lose
their jobs and people who had been earning a good income before they were
laid off also deserve to get those benefits,” said Traub.
The vast majority of assistance — nearly 90 percent — went to people making
less than $100,000, the data show.
Millionaires received a total of $264 million in aid, which amounts to less than
one percent of all the unemployment benefits reported.
Others with high salaries that fell short of seven figures also claimed assistance
in 2020. Nearly 70,000 returns reporting income between $500,000 and $1
Case 3:21-md-02992-GPC-MSB     Document 350-84     Filed 10/24/24     PageID.11524 
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million received unemployment insurance checks along with 750,000 returns
from people making between $250,000 and $500,000.
FILED UNDER: UNEMPLOYMENT, WEALTH GAP, MILLIONAIRES,
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