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Unpaid unemployment debt to raise taxes for businesses

TMA Media July 12, 2022
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WASHINGTON (TND) — Some Democratic-leaning states that took out loans from the federal government to pay out unemployment funds are not repaying the debt with budget surpluses, which will result in small increases in taxes for businesses to recover the funds.

In California, Connecticut, New York and Illinois, the states’ leaders chose to spend surplus funds created by $350 billion in coronavirus relief aid and a rapid economic recovery from the pandemic-induced shutdown on expanded social programs and public works projects. Some made dents in the debt owed but declined to pay off the balance in full.

If debts aren’t repaid by November, all businesses in the states will be charged $21 per employee by the federal government and higher state taxes on businesses to fund unemployment programs.

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