Taxing Times

The state is considering two new taxes on businesses in order to sustain unemployment benefits. One, discussed below, would help the state pay interest on loans it has taken from the federal government for the program. The other, explained in detail here, would raise more money for the program itself, so the state presumably has to borrow less. As usual, the state government has this all backwards: why not give businesses incentives to hire more people, so there are fewer people drawing unemployment benefits, so the program costs less? More businesses are—at least according to this report—willing to hire again in 2010, if only government could get out of their way. Well here’s a start: in his State of the State speech, Gov. Carcieri proposed a tax credit for businesses that hire. Now, wouldn’t it be nice if this counted against all these new unemployment taxes?

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One response to “Taxing Times

  1. Pingback: Employers to Pay More in Unemployment Taxes « OSPRI BLOG

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