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Republicans raise taxes 300%!

Ravi

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How funny! My Republican leaders in Florida raised unemployment tax by 300%

:lol:
 

Valerie

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Sounds like it may actually be more than 300% ?


Florida employers face a huge jump in unemployment compensation taxes

November 19, 2009

Small businesses in Florida battling the Great Recession have a new foe on the horizon: skyrocketing unemployment compensation taxes.

Depletion of the trust fund used to pay unemployment benefits has triggered what the state Revenue Department is calling a record tax increase in 2010 for Florida's half-million employers.

The minimum annual rate — charged to an employer with a solid history of retaining employees — will jump almost twelvefold, from $8.40 per employee to $100.30, revenue officials said Wednesday. The maximum rate, currently $378 per employee, would rise to $459.
Florida employers face a huge jump in unemployment compensation taxes - St. Petersburg Times
 

DiamondDave

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State law automatically raises and lowers the tax depending on how much money is in the trust fund.

I am not seeing where this was done by 'republicans' or even 'democrats' for that matter

The one thing I am seeing attributed to party is Democrats criticized the Republican-controlled Legislature for refusing to approve expanded benefits that would have tapped into an additional $444 million in federal stimulus money for unemployment compensation.
 

Valerie

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State law automatically raises and lowers the tax depending on how much money is in the trust fund.

I am not seeing where this was done by 'republicans' or even 'democrats' for that matter

The one thing I am seeing attributed to party is Democrats criticized the Republican-controlled Legislature for refusing to approve expanded benefits that would have tapped into an additional $444 million in federal stimulus money for unemployment compensation.


>



Under state law, if the trust fund falls below 4 percent of the total taxable payroll in the most recent fiscal year, it automatically triggers an adjustment in unemployment tax rates for the next year.

The fund dropped from more than $1.3 billion at the end of 2008 to zero in August, as the state's unemployment rate rose toward 11 percent. Since then, Florida has borrowed more than $600 million through an emergency federal loan program.

McCallister said replenishing the trust fund to the 4 percent level "equates to taking about $1.7 billion out of our economy that could go to new jobs or growth or expansion."

But it's tough to estimate how long the replenishment would take, or if the higher rates will be sufficient, until unemployment subsides. Florida is now tapping the federal lifeline at a rate of $300 million a month, and unemployment is projected to continue rising into 2010.

Revenue officials said they had no control over the size of the tax increase since it was tied to the 4 percent formula. They also said they have not calculated how much in revenues the tax increase would generate nor did they have an estimate on the average increase for employers. Florida's rising employment and drop in the number of employers have made such calculations difficult, said Robert Babin, legislative services director with the Florida Department of Revenue.
 
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Ravi

Ravi

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:lol:

Republicans have been in charge here forever and they never addressed the issue. Now we are all stuck with what is basically the Republicans raising the tax rate.

:thup:
 

teapartysamurai

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State law automatically raises and lowers the tax depending on how much money is in the trust fund.

I am not seeing where this was done by 'republicans' or even 'democrats' for that matter

The one thing I am seeing attributed to party is Democrats criticized the Republican-controlled Legislature for refusing to approve expanded benefits that would have tapped into an additional $444 million in federal stimulus money for unemployment compensation.


>



Under state law, if the trust fund falls below 4 percent of the total taxable payroll in the most recent fiscal year, it automatically triggers an adjustment in unemployment tax rates for the next year.

The fund dropped from more than $1.3 billion at the end of 2008 to zero in August, as the state's unemployment rate rose toward 11 percent. Since then, Florida has borrowed more than $600 million through an emergency federal loan program.

McCallister said replenishing the trust fund to the 4 percent level "equates to taking about $1.7 billion out of our economy that could go to new jobs or growth or expansion."

But it's tough to estimate how long the replenishment would take, or if the higher rates will be sufficient, until unemployment subsides. Florida is now tapping the federal lifeline at a rate of $300 million a month, and unemployment is projected to continue rising into 2010.

Revenue officials said they had no control over the size of the tax increase since it was tied to the 4 percent formula. They also said they have not calculated how much in revenues the tax increase would generate nor did they have an estimate on the average increase for employers. Florida's rising employment and drop in the number of employers have made such calculations difficult, said Robert Babin, legislative services director with the Florida Department of Revenue.

I would still like to see a url to this:
 

Valerie

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State law automatically raises and lowers the tax depending on how much money is in the trust fund.

I am not seeing where this was done by 'republicans' or even 'democrats' for that matter

The one thing I am seeing attributed to party is Democrats criticized the Republican-controlled Legislature for refusing to approve expanded benefits that would have tapped into an additional $444 million in federal stimulus money for unemployment compensation.


>



Under state law, if the trust fund falls below 4 percent of the total taxable payroll in the most recent fiscal year, it automatically triggers an adjustment in unemployment tax rates for the next year.

The fund dropped from more than $1.3 billion at the end of 2008 to zero in August, as the state's unemployment rate rose toward 11 percent. Since then, Florida has borrowed more than $600 million through an emergency federal loan program.

McCallister said replenishing the trust fund to the 4 percent level "equates to taking about $1.7 billion out of our economy that could go to new jobs or growth or expansion."

But it's tough to estimate how long the replenishment would take, or if the higher rates will be sufficient, until unemployment subsides. Florida is now tapping the federal lifeline at a rate of $300 million a month, and unemployment is projected to continue rising into 2010.

Revenue officials said they had no control over the size of the tax increase since it was tied to the 4 percent formula. They also said they have not calculated how much in revenues the tax increase would generate nor did they have an estimate on the average increase for employers. Florida's rising employment and drop in the number of employers have made such calculations difficult, said Robert Babin, legislative services director with the Florida Department of Revenue.

I would still like to see a url to this:



It's from the article I linked to in the prior post...
 

Valerie

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Looks like the legislature JUST passed some relief too...



Businesses to be spared unemployment-tax hike

To help boost the state's economy, state lawmakers opened the annual legislative session by passing a bill to delay steep increases in unemployment taxes.

03.03.10

Florida lawmakers gave sweeping approval Tuesday to a measure that delays a steep unemployment compensation tax hike for businesses.

The reprieve will force Florida to borrow an additional $4.3 billion from the federal government to cover benefits for the state's growing number of unemployed workers.

It's a trade-off the Republican-dominated Legislature is willing to accept given dire predictions from the business community about how the unemployment-tax increase would only lead to more pink slips.

``The business community {Ravi} has their tax bills on their desks right now,'' said Sen. Rudy Garcia, R-Hialeah, the Senate sponsor.

The bill unanimously passed the House and Senate and Gov. Charlie Crist signed it into law just before his State of the State speech. It's the first of many initiatives lawmakers will consider this year to help boost the state's dismal economy.

``There is no better message to send to our fellow Floridians on the opening day,'' Crist said in a statement.

Democrats initially wanted to expand unemployment eligibility to tap another $440 million in federal dollars. But to avoid delaying the bill, they ceded their argument that the bill didn't address the larger problem.

``This is not going to fix the problem,'' acknowledged Rep. Ron Saunders, D-Key West. ``This is going to delay the fix.''

Republicans helped ease Democrats' concerns by including a provision to extend unemployment benefits for up to eight weeks, a move that will help about 20,000 workers.

A year ago, the unemployment compensation fund held $1.3 billion, but it was emptied by August 2009 as the jobless rate rose to the current 11.8 percent. Since then, the state has borrowed about $250 million a month to pay benefits -- a total now topping $1.2 billion.

Anticipating the deficit, Florida lawmakers passed legislation in 2009 to keep the fund solvent by increasing the unemployment taxes paid by Florida's 474,000 employers.

The rate charged to the majority of employers was expected to climb from $8.40 a worker to $100.30 a worker, a 12-fold increase.

But under the current bill, these businesses will face a $25.20 per-worker cost. The maximum rate will remain $378 per worker.

In borrowing the money, the state will owe approximately $658 million in interest. The first payment is due in September 2011 and lawmakers said businesses will pay increased assessments to cover the cost.

``The train is coming,'' Rep. Dave Murzin, R-Pensacola, said of the interest payment. ``But this gives some predictability to the business cycle so business can plan to get hit by the train.''
Businesses to be spared unemployment-tax hike - Legislature - MiamiHerald.com
 

DiamondDave

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:lol:

Republicans have been in charge here forever and they never addressed the issue. Now we are all stuck with what is basically the Republicans raising the tax rate.

:thup:

Wrong

Seems like a pretty sensible approach... adjusting the tax as needed as written within the law, depending on the fund status... and who knows what party or legislator came up with the bill/law? I am not seeing that in the quick research

Nice try ravi... but your thread title is very disingenuous
 
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Ravi

Ravi

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Looks like the legislature JUST passed some relief too...



Businesses to be spared unemployment-tax hike

To help boost the state's economy, state lawmakers opened the annual legislative session by passing a bill to delay steep increases in unemployment taxes.

03.03.10

Florida lawmakers gave sweeping approval Tuesday to a measure that delays a steep unemployment compensation tax hike for businesses.

The reprieve will force Florida to borrow an additional $4.3 billion from the federal government to cover benefits for the state's growing number of unemployed workers.

It's a trade-off the Republican-dominated Legislature is willing to accept given dire predictions from the business community about how the unemployment-tax increase would only lead to more pink slips.

``The business community {Ravi} has their tax bills on their desks right now,'' said Sen. Rudy Garcia, R-Hialeah, the Senate sponsor.

The bill unanimously passed the House and Senate and Gov. Charlie Crist signed it into law just before his State of the State speech. It's the first of many initiatives lawmakers will consider this year to help boost the state's dismal economy.

``There is no better message to send to our fellow Floridians on the opening day,'' Crist said in a statement.

Democrats initially wanted to expand unemployment eligibility to tap another $440 million in federal dollars. But to avoid delaying the bill, they ceded their argument that the bill didn't address the larger problem.

``This is not going to fix the problem,'' acknowledged Rep. Ron Saunders, D-Key West. ``This is going to delay the fix.''

Republicans helped ease Democrats' concerns by including a provision to extend unemployment benefits for up to eight weeks, a move that will help about 20,000 workers.

A year ago, the unemployment compensation fund held $1.3 billion, but it was emptied by August 2009 as the jobless rate rose to the current 11.8 percent. Since then, the state has borrowed about $250 million a month to pay benefits -- a total now topping $1.2 billion.

Anticipating the deficit, Florida lawmakers passed legislation in 2009 to keep the fund solvent by increasing the unemployment taxes paid by Florida's 474,000 employers.

The rate charged to the majority of employers was expected to climb from $8.40 a worker to $100.30 a worker, a 12-fold increase.

But under the current bill, these businesses will face a $25.20 per-worker cost. The maximum rate will remain $378 per worker.

In borrowing the money, the state will owe approximately $658 million in interest. The first payment is due in September 2011 and lawmakers said businesses will pay increased assessments to cover the cost.

``The train is coming,'' Rep. Dave Murzin, R-Pensacola, said of the interest payment. ``But this gives some predictability to the business cycle so business can plan to get hit by the train.''
Businesses to be spared unemployment-tax hike - Legislature - MiamiHerald.com
I guess that's why I got my notice the other day that they were "only" raising it by 300%. :lol:
 

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