More Pain: Gov. Chris Christie warns N.J. companies of tax hike to cover unemployment fund (insurance)

[block911]

Gov. Chris Christie warns N.J. companies of tax hike to cover unemployment fund | New Jersey Real-Time News - - NJ.com

[Kracer]

"Business taxes are increased by law when the fund's balance dips below a certain level as measured every March"

Existing law determines tax increases. As opposed to any suggestion CC decided to raise the taxes.

Carry on.....

[doc1]

Is the money that's paid into the fund used exclusively for unemployment payouts (by law, preferably) or do our politicians have some latitude with regards to getting their hands on it?

[diorgirl]

Originally Posted by doc1

Is the money that's paid into the fund used exclusively for unemployment payouts (by law, preferably) or do our politicians have some latitude with regards to getting their hands on it?

In December 2009, nj.com reported that the state's unemployment insurance fund has traditionally been the victim of "a bipartisan practice of using taxes intended for the fund to pay for other budget needs, such as Charity Care, or health care for the poor."

Over the course of 15 years, it has been estimated that $4.7 billion was diverted to these "other budget needs." When the unemployment insurance fund dips below a certain level, businesses are taxed to make up the shortfall -- which is the current situation.

Also in December, the State Assembly passed a bill that would add amend the state constitution to prohibit politicians from diverting these funds in the future. That amendment is scheduled to be on the ballot this year.

[doc1]

Originally Posted by diorgirl

In December 2009, nj.com reported that the state's unemployment insurance fund has traditionally been the victim of "a bipartisan practice of using taxes intended for the fund to pay for other budget needs, such as Charity Care, or health care for the poor."

Over the course of 15 years, it has been estimated that $4.7 billion was diverted to these "other budget needs." When the unemployment insurance fund dips below a certain level, businesses are taxed to make up the shortfall -- which is the current situation.

Also in December, the State Assembly passed a bill that would add amend the state constitution to prohibit politicians from diverting these funds in the future. That amendment is scheduled to be on the ballot this year.

Thanks for the information.

We've got to make all of the various funds unavailable to our politicans and their friends if we're to get NJ moving forward financially.

[Marc Paolella]

Another solution is to stop the endless extensions. It is supposed to be a temporary stopgap, not a source of income in and of itself. It should only be for 3 or 4 months, then that's it.

[diorgirl]

Originally Posted by Marc Paolella

Another solution is to stop the endless extensions. It is supposed to be a temporary stopgap, not a source of income in and of itself. It should only be for 3 or 4 months, then that's it.

Just FYI -- Stopping extended UI benefits would have no effect on NJ's unemployment insurance fund.

A this time, the money paid into the state unemployment insurance fund covers only the 26 weeks of regular unemployment insurance for each claimnant.

The federal government has funded 100% of the four levels of EUC Tiers (for up to a total of 53 weeks).

And since February 2009, the federal government has supplied 100% of the funding of states' EB and High EB benefits (up to another 20 weeks). Previously, funding for States' respective EB benefits was shared: 50% from the feds, 50% from the state.

So currently, NJ's unemployment insurance funds pays 100% of 26 weeks for each claimant; the federal government funds 100% of the 73 weeks of extended benefits.

[BergenCountyJohnny]

Originally Posted by diorgirl

Just FYI -- Stopping extended UI benefits would have no effect on NJ's unemployment insurance fund.

A this time, the money paid into the state unemployment insurance fund covers only the 26 weeks of regular unemployment insurance for each claimnant.

The federal government has funded 100% of the four levels of EUC Tiers (for up to a total of 53 weeks).

And since February 2009, the federal government has supplied 100% of the funding of states' EB and High EB benefits (up to another 20 weeks). Previously, funding for States' respective EB benefits was shared: 50% from the feds, 50% from the state.

So currently, NJ's unemployment insurance funds pays 100% of 26 weeks for each claimant; the federal government funds 100% of the 73 weeks of extended benefits.

Furthermore, stopping unemployment benefits would have no effect on the whining and moaning that so many do as they pin the blame for their high taxation woes on unemployment.

[cw30000]

This is nothing new. The more people a company lay off, the higher their premium.