World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


Business Coalition: Don't Increase Unemployment Taxes




Business Coalition Urges Congress Not To Increase Federal Unemployment Payroll Taxes – Citing Increases In Unemployment Taxes And State Solvency Measures

WASHINGTON, D.C., DECEMBER 11, 2012 – A coalition of national and state business organizations yesterday urged the United States Congress not to increase the Federal Unemployment Tax (FUTA) in light of already increasing state and federal payroll taxes that have been triggered by high unemployment claims levels and outstanding state loans.

In a letter to Congressional leadership, coalition members asked that there be
• Maintenance of current Federal Unemployment Tax (FUTA) Rates and Base
• Elimination of restrictions on state solvency measures
• Protection of employer financed federal unemployment trust fund accounts

Employers across the country are experiencing dramatic increases in tax burden related to unemployment compensation, including state experience rate increases, state solvency taxes, assessments to pay for interest on outstanding loans, increases in federal unemployment taxes, and debt service payments in support of bonds and other financing to pay off large outstanding state debts.

State unemployment insurance taxes increased from $38.3 billion in 2010 to $51 billion in 2012, a 33% increase in just two years! Employers in 18 states and the Virgin Islands are paying increasing FUTA penalty taxes due to outstanding federal debts. Employers in 14 of these states will be required to pay a FUTA tax rate for 2012 which is double the rate at the end of 2011 and likely to continue increasing for 2013. Employers will be required to pay $105 per employee in Indiana and $147 per employee in the Virgin Islands, dramatic increases from the normal $42 base FUTA per employee tax.

20 states currently owe over $26 billion in federal loan debt. In addition, Colorado, Idaho, Illinois, Michigan, Pennsylvania and Texas employers are currently paying or will pay billions in assessments to cover debt service for bonds to repay federal debt.

The coalition urged Congress not to further increase the already increasing employer tax burden and provide state flexibility in addressing state unemployment trust fund solvency.


Business_Letter_Opposing_FUTA_Increases_2012_2.pdf


ENDS

© Scoop Media

 
 
 
 
 
World Headlines

 

Westminster: NZ PM Condemns London Attack

“London is a place many thousands of New Zealanders have visited and called home, and where many more have friends and family based, so this attack feels very close to home,” Mr English says. More>>

ALSO:

Amnesty: Campaign Mass Hangings And Extermination At Syrian Prison

A chilling new report by Amnesty International exposes the Syrian government’s calculated campaign of extrajudicial executions by mass hangings at Saydnaya Prison. Between 2011 and 2015, every week and often twice a week, groups of up to 50 people ... More>>

Russian Hack Job?: White House - Actions In Response To Russian Malicious Cyber Activity & Harassment

President Obama authorized a number of actions in response to the Russian government’s aggressive harassment of U.S. officials and cyber operations aimed at the U.S. election in 2016. More>>

Israel/Palestine: Michael Field - Background To How Israel Nearly Went To War With New Zealand

New Zealand and Senegal managed to get the United Nations Security Council to pass resolution 2334 which said Israel’s settlements in Palestinian territory violate international law and undermine a two-state solution in Israel's conflict with Palestine. More>>

ALSO:

US Indigenous Affairs: How President Obama Has Protected Our Sacred Land

I am very proud to be both Navajo and American. As the President of the Navajo Nation, I’ve dedicated my life to ensuring that, as a Navajo, my story -- and our stories -- are part of our collective American history. Today, I want to share one of those stories with you. More>>

Get More From Scoop

 
 
 
 
World
Search Scoop  
 
 
Powered by Vodafone
NZ independent news