Posted on 11/21/2024 1:59:51 PM PST by ChicagoConservative27
California businesses — and households that pay payroll taxes on domestic employees — are waking up to the reality that they are being forced to pay for the state’s default on $20 billion in federal loans to cover a COVID-era shortfall.
The issue came to light this week with a social media post by restaurateur Andrew Gruel about unexpected costs:
The Hoover Institution, based at Stanford University, had warned about the problem more than a year ago:
Little did California businesses know that they were cosigners on the state’s nearly $20 billion loan from the federal government that was used to cover California’s unemployment fund shortfall during the COVID pandemic. This ugly truth became apparent when the state recently decided to stop making payments on this loan. When a state defaults on its federal unemployment insurance loan, federal law requires that the state’s businesses repay the loan.
(Excerpt) Read more at breitbart.com ...
California people are all rolling in dough.
I saw Andrew’s post on X and could hardly believe it.
Businesses should not be on the hook for mismanagement by the state, especially if they did not receive any Covid money.
Kookifornia state government refuses to balance the budget so they raid the productive citizens funds. Keep voting for their overlords in Sacto who have no qualms about ripping them off. Enjoy reproductive rights and hating the Orange President.
This is no surprise to anyone who does payroll taxes in CA.
the UI rate went up like %.5 because of this.
This brings up something that most folks do not get. Every time you vote for a bond issue you are mortgaging your home. If a municipality or county votes in a bond issue they are taking out a loan. The collateral is the property in the area. In other words your house. If the governmental body defaults it is perfectly legal for the bondholders to attach the property that backed the loan. That’s your house.
Joe will forgive the debt before he leaves.
And what you don’t vote for...
Related...
Elon Musk
@elonmusk
California, the Golden State, is eating its Golden Geese
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Chef Andrew Gruel
@ChefGruel
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Nov 20
We just ran payroll. The payroll taxes were 2K higher than calculated. We called the payroll company. They explained (in summary) that California has a budget shortfall, and the federal government wants money back that it lent California for UI that it “lost.” They are making up
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1:58 AM · Nov 21, 2024
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https://x.com/elonmusk/status/1859491557855912245
This is why Ellen DeGeneres really left, isn’t it...
Deep State’s chickens are coming home to roost.
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