The most common setup I've seen originates from the three tier tax system. Remember how miga.kvetch always cry about muh 60% tax rate in all EU countries. That's just not true, you pay 20-25%, to your municipality, if your wage is less than $4000/mo which is a reasonably high wage in most EU countries. You can live a decent life, the American dream, owning a house, two cars and a dog on less than $2000/mo.
Now add another 10% for the county tax and the Church tax. This pays for for fancy Churches every few miles as well as "free" healthcare, disability help, subsidized mass transit, you name it. Only when you earn more than $4000/mo you also pay capital gains tax on the excess amount, which adds up 20%+10%+30%, close to 60% in total tax. Last 30% goes to the national government. You only pay this if you're stupid, it's very easy to bypass even for the average Joe. Become a consultant or get paid in tax free benefits instead of money.
So this is how the scam works, illegals as well as all welfare, all free gibs are paid by the municipality and comes from that first 20% tax only paid by workers. Then there's VAT, a consumption tax, typically around 20% on everything you buy, which goes directly to the national government.
Because of this, the national government doesn't care about unemployment, more consoomers = more tax income. Simple as that. The municipalities obviously care because they have actual expenses, and every welfare parasite claiming free gibs is a burden to the city.
The national government then use it's excess in taxes to provide free gibs for israel, or to invest in various green scams or art projects. All of which benefits jews.