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> With an unpaid federal unemployment insurance loan, the federal government raises the unemployment insurance tax immediately by 0.3 percent on each business w
by 1024core 3y ago
> With an unpaid federal unemployment insurance loan, the federal government raises the unemployment insurance tax immediately by 0.3 percent on each business within the state, and an additional 0.3 percent each year after that until the loan is fully repaid.
Yikes.
- woodruffw 3y ago0.3% of the first $7,000 only. It's a maximum $21 tax raise; the Hoover Institution's reporting conveniently omits this fact[1]. [1]: https://californiapayroll.com/blog/tax-alert-futa-credit-reduction-for-2022-wages/ https://californiapayroll.com/blog/tax-alert-futa-credit-red...
- NtochkaNzvanova 3y agoDid you miss the part in the original article about "an additional 0.3 percent each year after that until the loan is fully repaid"? Do you have a source that rebuts that, or are you just conveniently omitting that because you want to minimize the problem? Stop repeating this misleading factoid to try to make it seem like this is just some Republican think tank inventing a problem to make the Democratic government in California look bad. $18.5 billion is $18.5 billion regardless of how thinly you slice it. California does not have the ~billion employees it would take to pay of the loan in one year. Then there's interest, presumably. Defaulting on a huge loan, while allowing tens of billions more in fraud, is irresponsible government.