Double Dipping Government

In 2000 I was laid off for the 1st time and did not have to pay taxes on money that I already paid taxes on to collect; unfortunately, I was laid off again in 2010 & was asked to have money taken out of my unemployment check. Unfortunately, I am a one income household & receiving only 70% of my unemployment check there's no room left for taxes to be taken out and still pay rent, auto insurance, utilities, and personal bills; besides the unemployed should not have to pay additional taxes on money we earned already and had taxes taken out on along with paying into the unemployment insurance while working as well. This time around I had to pay $700.00 for taxes the 1st yr of unemployment (2010) and $1700.00 for the full yr. of not being employed in 2011. Not to get caught up in the daily interest & penalties that are held against you, I had to take out a personal loan to consolidate my debt & the IRS bill in order to not find myself in a financial bind. Why do we have to pay taxes on money we paid taxes for when we earn it and then turn around and pay taxes on the same money when it's time to collect it ? That's government double dipping that should not be; placing unnecessary financial burdens on individuals who already are tied up and unemployed!?!