If Florida raises taxes, many businesses will flounder and close shop. That is when they move to a "business friendly" state.
The increase in Florida is automatic under state law. It was triggered when the balance in the state's Unemployment Compensation Trust Fund fell below 4 percent of taxable payroll on June 30. The trust fund dropped from more than $1.3 billion last year to zero in August. Since then the state has been borrowing $300 million a month to pay unemployment claims.
They need to change that law. It will spur more and more unemployment in Florida. Rather than hurt the employers, they should consider cutting expenditures elsewhere. They could go to an all voucher school system and cut education costs by forty percent.
