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Economy / Taxes

I Say Missouri Should Refuse the Stimulus Unemployment Funds

By David Stokes on Feb 26, 2009

We haven’t written much about the stimulus plan on the blog. It is more of a national issue, and it is all just too depressing for words. Dr. Joseph Haslag recorded a great radio commentary about it, though, if you would like to listen. But now some in Missouri are discussing the wisdom of letting the camel’s nose under the tent for the new unemployment insurance rules. I commend Lt. Gov. Peter Kinder and the legislative leadership for possibly resisting the unemployment portions of the “stimulus plan.” The St. Joe News-Press has the article here, and thanks to Combest for the link.

This is something I can write about because it is a tax I pay. My wife and I pay unemployment taxes for our child’s caregiver, and five times a year I calculate the tax and mail it in. (Four times for the state, and once for the feds.) This is not withheld from a paycheck, it is entirely employer-paid. I love what the Lt. Gov. said here:

“We are here to say no,” Mr. Kinder said. “This is essentially a federal bribe to change state law permanently, and the bribe lasts two years.”

And, after those two years, employers are going to have to pay higher taxes permanently. They have already increased the state’s unemployment tax wage base for 2009 — and I think that increase is the only increase employers should be forced to pay. As I said, the whole thing is just so depressing, pun intended.

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About the author

David Stokes

Director of Municipal Policy

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