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Obama To Double ‘Unemployment Tax’

From an unquestioning Associated Press:

AP source: Obama wants jobless aid help for states

Obama wants to delay state jobless insurance debt, increase taxable levels in 2014

Jim Kuhnhenn, Associated Press, On Monday February 7, 2011

WASHINGTON (AP) — The Obama administration is proposing short-term relief to states saddled with unemployment insurance debt, coupled with a delayed increase in the income level used to tax employers for the aid to the jobless.

Here we go again.

The administration plans to include the proposal in its budget plan next week. The plan was described late Monday by a person familiar with the discussions on the condition of anonymity because the budget plan is still being completed.

Rising unemployment has placed such a burden on states that 30 of them owe the federal government $42 billion in money borrowed to meet their unemployment insurance obligations. Three states already have had to raise taxes to begin paying back the money they owe. More than 20 other states likely would have to raise taxes to cover their unemployment insurance debts. Under federal law, such tax increases are automatic once the money owed reaches a certain level.

This AP article almost makes it sound like long term unemployment benefits are not such a good thing.

But at least two of the nation’s foremost economic experts, Nancy Pelosi and Austan Goolsbee, have repeatedly assured us that giving out long term unemployment money was the best thing one could do to stimulate the economy.

Under the proposal, the administration would impose a moratorium in 2011 and 2012 on state tax increases and on state interest payments on the debt.

Once again, Mr. Obama is doing everything he can to help his public sector union foot soldiers – which after all, are the real problem the states are facing. And any attempt at requiring fiscal responsibility from them be damned.

Welcome to the ‘New Era Of Fiscal Responsibility.’

In 2014, however, the administration proposes to increase the taxable income level for unemployment insurance from $7,000 to $15,000.

Under the proposal, the federal unemployment insurance rate would be adjusted so that the new higher income level would not result in a federal tax increase, the person familiar with the plan said.

So that Mr. Obama can continue to peddle his lie that he has not raised taxes.

States, however, could retain their current rates, meaning employers could face higher unemployment insurance taxes beginning in 2014

How many employers are going to want to hire anyone with the prospect of his unemployment insurance tax more than doubling in two years? And this is from the new, ‘business friendly’ candidate President Obama.

This article was posted by Steve on Tuesday, February 8th, 2011. Comments are currently closed.

5 Responses to “Obama To Double ‘Unemployment Tax’”

  1. Rusty Shackleford says:

    “…and right now everybody’s so pinched that business is bad for everybody and I think when you spread the wealth around, it’s good for everybody.”

    Barack Obama, 12 October 2008

    “Nothing stands out so conspicuously, or remains so firmly fixed in the memory, as something which you have blundered.”

    Marcus Tullius Cicero ~50 BC

  2. heykev says:

    Let me get this straight. We are in the middle of the “Great (Obama) Recession” where the unemployment rate is hovering around 10% and this genius wants to raise the unemployment tax making it more difficult for companies to employ workers. Soon the only ones employed will be those handing out unemployment and food stamp checks.

    Our Dear Leader is doing all he can to destroy this country…and succeeding.

  3. Liberals Demise says:

    Obama is to business what making love is to virginity.

  4. Papa Louie says:

    Another example of leftist non-logic. They swear up and down that when the government spends money in the form of stimulus, it creates jobs. But they also swear up and down that when the government does the opposite – takes in more money from the private sector – it does not destroy jobs.

    Of course, they’ll claim anything to get their way. What they really want is to raise taxes on the private sector so they can spend the money on themselves and their friends in the public sector. The don’t really care about creating jobs for the rest of us – until it looks like they are about to lose the next election.

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