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People have been confused about the latest law imposed by the government about unemployment benefits. According to the law, the first $2,400 of your unemployment benefits will not be taxed. However the conditions of what and how the benefits will be taxed is still a bit vague which is why the question, are unemployment benefits subject to income tax, is something the government was not able to resolve from yesterday’s meeting agenda. According to an insider, the House of Representatives and the Senate are still debating whether unemployment benefits not taxable should be increased to $4000 so that people can still have some money to use for their basic necessities. The Senate argued that since the benefits provided for the unemployed will just roll as the people will be using it to spend – for their food, shelter, transportation (when they look for a job), clothes, etc. Increasing the unemployment benefits not taxable will give the people the opportunity to spend. Previously, unemployment benefits were not taxed at all. The government has been lenient with the unemployment benefits law because the economy was prospering and the government has seen this as their way of giving back to the community. Though it was not taxable, the benefits were small because the basic commodities were also low and they do not want to encourage people to just continue accepting the benefits and not have the desire to work. Both government bodies did not arrive with a decision on how to deal with this matter. Other reports say that it might take a few more days before a resolution will be drawn up by two parties. The President is hopeful that the House and Senate will come up with their decision very soon as the income tax filing season is almost near. According to the President, people cannot be misled and everything has to be clear.