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Future unemployment recipients in North Carolina could receive fewer benefits under plans a legislative committee will review today.
North Carolina owes the federal government $2.4 billion the state has borrowed to pay first time unemployment claims. Under federal law, the North Carolina taxes companies pay toward funding the unemployment insurance system will rise in order to help repay that debt. Lawmakers fear those tax increases could be a drag on the state's economic recovery.
The Revenue Laws Study Committee, a group of House and Senate lawmakers, is expected to roll out a plan to repay that debt more quickly today (Wednesday). As the Associated Press reported last month, that proposal is expected to reduce the benefits workers receive when they lose their jobs.
According to a draft agenda, the committee will hear about plans to refinance the unemployment debt. Refinancing the debt could help pay it down faster, but it's unclear if the state has enough "capacity" to borrow the needed money.
Liberal activists worry that the deal, crafted by conservative lawmakers, will help avoid higher taxes for businesses at the expense of the unemployed. (See copy of release below).
“The changes to the unemployment insurance system being pursued by Revenue Laws Committee members will significantly reduce benefit amounts and the duration of benefits while doing nothing to address the long-term financial footing of the unemployment insurance system,” said Bill Rowe, director of advocacy at the North Carolina Justice Center.
But business leaders, including the North Carolina Chamber of Commerce, have pushed lawmakers to address this problem.
"The additional tax burden with a status quo repayment approach could represent an unsustainable increase in total unemployment insurance taxes for businesses, threatening what is needed most, jobs for North Carolinians," said Gary Salamido, vice president of government affairs for the North Carolina Chamber, in testimony to the committe earlier this year.
The committee meets at 9:30 a.m. If it does reccomend legislation, it will have to be heard and passed when the full General Assembly returns in January. Rep. Julia Howard, R-Davie, told WRAL-TV Tuesday that she expected lawmakers to take up a bill that is basically the same as what the committee will approve today.
Governor-elect Pat McCrory, a Republican, has said that addressing the unemployment debt one of his top priorities and something he'd like to do early in his term.
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wow.
December 5, 2012 10:04 a.m.
They could easily afford to pay say 39%(the old rate) rather than 35%. And capital gains tax rates could easily be 30-40% rather than 15% which is less than what the bottom 20% of our nation pays in TOTAL taxes. A progressive tax system recognizes that the poor and middle class have less disposable income.
http://www.cbpp.org/cms/index.cfm?fa=view&id=3505
December 5, 2012 10:04 a.m.
The cost of health care in this country is continuing to skyrocket. The purpose of the ACA was to try to cut those costs while, at the same time, provide more and better coverage to more people. Waste in many forms is rampant in the health care industry. I know because I work in that environment and see it every day. I also see monumental efforts within our company to cut excess costs while continuing to improve the care we provide for out patients, and we are making great progress. If you were told that you have too many people in some departments, guess what ... you probably do. While those excess people depend on their jobs to support themselves and their families, keeping them on just to keep them in is costing everyone. If we want to cut health care costs, we have to cut the waste.
December 5, 2012 9:57 a.m.
Sure, they pay more in actual dollars, but that's less important when it comes to taxes than SHARE of one's income acquired. Mitt Romney paying 14% in taxes is more actual dollars to the system than the total dollars from some teacher's 30%, but the tax rate is still REGRESSIVE and favors rich people like him and Warren Buffett.
December 5, 2012 9:50 a.m.
I am personally thinking about hiring a lawyer and sueing the government to get all my SS paid in for the last 46 years given back to me. Certainly is embezzlement as far as I am concerned. I was never given a choice about contributing that money every pay period and they took it out with a promise that I would get it back so they had no right to redirect or fund any other program with it!
December 5, 2012 9:49 a.m.
What is their share and just who gets to say what their share is? Take the money perdue is pouring into the Dix property and use it for helping the state and it's citizens? Not just with the unemployment insurance, but with everything else. Funny how she can always find the money to do what she wants, but not for what we need!
December 5, 2012 9:47 a.m.
"Well, all you business owners on here get what you voted for."
I think some may need to reread the article, it's said they're pushing to cut unemployment benefits, so the business can keep more money. Some seem to forget that the rate was dropped when they thought there was enough money, then they robbed some of it, never raised the rate back to cover the drop. The Fed. goverment warned the state that their fund was in danger, before it collasped and they took no action. Puppets for Corp. welfare.
December 5, 2012 9:46 a.m.
He's responding to a previous poster who claims the rich need to pay more (than the 50% they're at.) You need to quote and reprimand him...
December 5, 2012 9:41 a.m.
to quote Will Rogers, "If they did not have the income, they would not have the tax." And by the way, the rich and super rich often pay far less taxes than the vanishing middle class people do.
December 5, 2012 9:39 a.m.
December 5, 2012 9:38 a.m.
December 5, 2012 9:37 a.m.
December 5, 2012 9:36 a.m.
They got to have their free money!
December 5, 2012 9:33 a.m.
December 5, 2012 9:32 a.m.
Veterans are deadbeats? elderly person are deadbeats? Disabled persons are deadbeats?
Keep it up, the right side is only getting smaller because of this mindset.
December 5, 2012 9:32 a.m.
December 5, 2012 9:30 a.m.
December 5, 2012 9:30 a.m.
you should be thanking your boss, Obama didn't build that business, nor did he hire you.
December 5, 2012 9:27 a.m.
Wait... what?
Unemployment insurance has literally nothing whatsoever to do with income taxes. Your entire post makes no sense.
December 5, 2012 9:26 a.m.
December 5, 2012 9:24 a.m.
Be carefule UE has basically become an entitlement program, and you know how protective the deadbeats are about their freebies
December 5, 2012 9:20 a.m.
By the time the "rich" and "super rich" pay their taxes now, federal, state, and local, they are paying close to 50% of their income...they'll just put it in tax shelters if rates keep increasing...can't say I blame them...I'd want to keep the money I busted my rear end for too
December 5, 2012 9:19 a.m.
=================================================
They? Hahaha, BO and his admin is doing that already. Medicare and SS will be gone soon and the promised job creations is.............well still being promised. From your tone, sounds like you're gonna have to get a job soon. Good luck and have a Great Day!!!
December 5, 2012 9:18 a.m.
Well, all you business owners on here get what you voted for.
December 5, 2012 9:13 a.m.
December 5, 2012 9:12 a.m.
December 5, 2012 9:08 a.m.
December 5, 2012 9:07 a.m.
December 5, 2012 9:01 a.m.
First, you realize that YOU, the employee, did not pay for that insurance and secondly, it was a tax program set up by government (state and feds) to force business to fund future unemployment.
Those are called 'regulations' and these are the kind of things when the feds and states decided to extend unemployment benefits well beyond the stipulated number of weeks (doubled down on businesses debt) spun the ratio out of whack.
Businesses have new expensive regulations to deal with every year, this year the biggest is the healthcare bill coming due on their books.
Watch unemployment go higher yet ...
December 5, 2012 8:59 a.m.
No, we had a stagnant economy for how many years now? The rates were fine, until the government went on a massive spending spree of over extended unemployment benefits.
December 5, 2012 8:56 a.m.
We can't complain now and no, I don't think this should fall on the businesses side of the ledger. for if it does, there are that many more than will lose their jobs and the cycle continues.
Stop the nonsense of 'extended' benefits (even though Pelosi stated that by extending unemployment it would be the greatest job generator ever, stupid woman).
"It injects demand into the economy, and it’s job creating. It creates jobs faster than almost any other initiative you can name." - Pelosi
December 5, 2012 8:54 a.m.
The program was intended to provide a nominal level of temproary income support for 26 weeks. The wise libs decided to extend it to a 2 year income replacement program (for the "stimulus" effect). Now we have to pay this welfare back.
True insurance rarely decides to provide 400% more in benefits than you orginally agreed to "just to be nice"...
December 5, 2012 8:53 a.m.
If they cut unemployment, Medicare or existing Social Security payments I guarantee that such a stink will be raised that the cuts will have to be reinstated, and rightly so. There are other places to make savings way before hurting those who need the above benefits. For starters, let us get the rich and super rich start pulling their share of the load.
December 5, 2012 8:52 a.m.
"Jobs Bill" = Dem code speak for more giveaways with taxpayer money.
All that "stimulus" and "green energy" investment has really paid off in jobs and prosperity......
December 5, 2012 8:50 a.m.
Is that supposed to make us more willing to hire or keep employees? Or, is it just another reason to look at offshoring where you can or using subs when you can't?
December 5, 2012 8:47 a.m.
No, it's not.... unemployment insurance is an EMPLOYER cost, not the employees cost.
They were paying too-low rates for years, which is why the money had to be borrowed to pay claims. Thus that's the same folks who should see higher rates now to make up for it.
Certainly this is in part state fault as well- if you know in a recession you'll have to pay extended benefits then you ought have a tax rate that collects enough to have a reserve that covers that.
But making a big cut to future insured to make up for your past mistake is the wrong answer.
December 5, 2012 8:46 a.m.
Imagine if they tried that for any other type of insurance...
"Sorry, you're only getting half your houses value because we had to pay a lot of OTHER people full-value claims a couple years ago"
December 5, 2012 8:44 a.m.
Yup, apparently there is money to burn.
December 5, 2012 8:40 a.m.
Part of it is from the Keynesian economics we are taught starting in school. Our whole economy is dependent on consumer spending and debt. The whole "only spend it if you got it" mentaility went out the window in 1971 with the collaspe of Bretton Woods.
A place to start rebuilding would be to have sound currency.
I'll put my tin foil hat back on now.
December 5, 2012 8:39 a.m.
Hopefully nothing. It is not the businesses responsibility. Its the responsibility of the person. Maybe now people will actually try and get back to work instead of miliking the system for all its worth.
December 5, 2012 8:34 a.m.
December 5, 2012 8:31 a.m.
More proof that the federal and state governments cannot be trusted with the taxpayers money. The US is broke. Get ready for a fiscal crisis and collapse which will result in chaos.
December 5, 2012 8:27 a.m.
December 5, 2012 8:24 a.m.
December 5, 2012 8:19 a.m.
December 5, 2012 8:18 a.m.
December 5, 2012 8:17 a.m.
well maybe work on a jobs bill and then you won't have to cover the insurance.....what are you waiting for?
December 5, 2012 8:17 a.m.
Unemployed workers get a 50% cut. What are businesses going to pay to close the gap, caused largely by rates being too low before the recession?
December 5, 2012 8:15 a.m.
December 5, 2012 8:15 a.m.
December 5, 2012 8:08 a.m.