Posted on 05/05/2023 8:57:33 PM PDT by T.B. Yoits
California borrowed approximately $20 billion from the federal government to cover unemployment benefits during the pandemic, and with Gov. Gavin Newsom’s recent decision to not pay it back, employers are now saddled with the expense, according to experts.
“The state should have taken care of the loans with the COVID money it received from the government in 2021,” Marc Joffe, policy analyst at the Cato Institute—a public policy think tank headquartered in Washington, D.C.—told The Epoch Times.
In the proposed 2023–2024 budget, $750 million was allocated to start paying down the loans, but Newsom made changes to the plan in January and withdrew the funding.
The decision leaves businesses in the state responsible for the loans—as mandated by federal regulations—so the federal unemployment tax rate of .6 percent is set to increase by .3 percent annually, starting in 2023, until the loan is extinguished.
“California is just not really an employer-friendly state,” Joffe said. “This one thing will not be a difference between a business remaining open or closing, but it’s just another burden on top of the many burdens the state puts on employers.”
Twenty-two states borrowed money for unemployment insurance from the federal government during the pandemic, with all but four—California, Colorado, Connecticut, and New York—paying back their debts.
California owes the most, by far, with approximately $18.6 billion outstanding as of May 2, followed by New York’s $8 billion, Connecticut’s $187 million, and Colorado’s $77 million, according to U.S. Treasury Department data.
The discrepancy in amounts borrowed and owed by states lies in the different approaches to managing the pandemic, with California’s stricter lockdown causing unemployment to remain higher and longer, according to experts.
(Excerpt) Read more at theepochtimes.com ...
It seems like every day I am astounded by something Democrats do or say.
Liberals, screwing you coming and going.
First and foremost.............. Reparations!
Newsome’s out.
And they are talking about reparations???
“...now businesses have to pay”? If sales tax is going up to pay California’s debt, then Californians have to pay.
“Twenty-two states borrowed money for unemployment insurance from the federal government during the pandemic, with all but four—California, Colorado, Connecticut, and New York—paying back their debts.”
I hope a slew of Louisiana’s least desirable blacks move to California for the reparations. A couple of million bucks is not chump change.
I imagine ALL of Haiti will be there in a few weeks for that. Border will be wide open.
Anyone who has a business there and doesn’t move it out of state, live with it
I assume Newsom got his 10% off the top. Did he forget to give Joe his 10%?
These are the looters Ayn Rand warned you about.
Was about to inquire about that? I hate to think who the State of California expects to pay for its thefts.
You get what you elect. Now pay the price for it.
Brilliant comment!
bravo...
"Lamont ya big dummy"!
You could turn the state budget over to heroin addicts and the spending would be just as reckless.
This is happening and has happened in many rat run blue states because small businesses are in their hook
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