The Conservative Cave
Current Events => Economics => Topic started by: Baruch Menachem on November 24, 2009, 01:58:14 PM
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from the Washington Times (http://www.washingtontimes.com/news/2009/nov/23/unemployment-taxes-hit-small-businesses-hard/?feat=home_headlines)
As if small businesses needed another reason not to hire, consider their latest financial burden: the cost of rising unemployment itself.
Employers already are squeezed by tight credit, rising health care costs, wary consumers and a higher minimum wage. Now, the surging jobless rate is imposing another cost. It's forcing higher state taxes on companies to pay for unemployment insurance claims.
Most of the tax increases are being triggered by laws requiring higher taxes to make up for a decline in state funds to pay for benefits. In some cases, cuts in jobless aid are required, too.
Florida's minimum unemployment tax, for instance, will skyrocket next year to $100.30 per employee from $8.40. The maximum will rise to $459 per worker from $378. Like most other states, Florida taxes companies more if they've recently laid off workers who draw benefits.
Hawaii will raise its average unemployment tax 10-fold next year, from about $90 per employee to more than $1,000. And Maryland's minimum tax will more than triple from $51 per employee to $187. Its maximum will jump from $765 to nearly $1,150.
As unemployment climbs, so do the costs associated with it. Costs that are passed onto businesses, who are already not interested in hiring anyone anyway. And are looking for ways to cut costs.
It looks like we got change all right. Unemployment from5% to 17%. As for that hope thing, well, abandon hope on entry to 0bamaland.
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We have created a very unfriendly environment for business in this country.And people wonder why companies want to only expand overseas.