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

 

'Very Concerned' After Court Ruling: UNHRC On Transfer Of 267 People From Australia To Nauru

Most of these people were reportedly brought to Australia from Nauru to receive medical treatment and are in a fragile physical and mental state. The group includes more than 12 women and at least one child who have allegedly suffered sexual assault or harassment while in Nauru. The group also includes 37 children born in Australia. More>>

ALSO:

Sanctions To Be Lifted: NZ Welcomes Implementation Of Iran Nuclear Deal

Duty Minister Nikki Kaye has welcomed the next stage in the historic nuclear deal between Iran, the Five Permanent (P5) members of the United Nations Security Council, and Germany... “New Zealand has now started the domestic process for removing the UN sanctions." More>>

ALSO:

Pre-Davos Reports: 62 People Own Same Wealth As Half The World

Runaway inequality has created a world where 62 people own as much wealth as the poorest half of the world’s population – a figure that has fallen from 388 just five years ago, according to an Oxfam report published today ahead of the annual gathering of the world’s financial and political elites in Davos.. More>>

ALSO:

Jakarta: UN Secretary-General On Attacks

The Secretary-General condemns the bombings and gun attacks in Jakarta today... there is absolutely no justification for such acts of terrorism. He hopes the perpetrators of today's attacks will be swiftly brought to justice. More>>

ALSO:

Werewolf: America, The Gated

How, in a global metropolis like New York, do you write about immigration as a problem to be solved? And yet immigration is a hot button issue among those fighting to break away from the unruly clump of starters in the race for Republican nominee. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
World
Search Scoop  
 
 
Powered by Vodafone
NZ independent news