Friday, October 29, 2010

Payroll Tax increase protested

This article in the Review Journal is about the 50% hike in unemployment taxes which will take effect January 1, 2011. The article states that,
The tax is being increased because the state unemployment trust fund was exhausted in October 2009 and the state so far has been forced to borrow more than $500 million from the U.S. Department of Labor to keep paying benefits. The heavy borrowing occurred largely because Nevada's unemployment rate has tripled in three years and now stands at 14.4 percent, the highest in the nation.

With no signs of recovery looming, the state borrowing is expected to reach $830 million by Oct. 1, 2011. Just three years ago, the state trust fund was more than $800 million in the black.

This tax will reduce jobs and increase unemployment instead of increasing jobs.

I suggest that instead of raising the unemployment tax, the state should stop illegal aliens from receiving health care and education by passing laws similar to Arizona's SB 1070.

The millions of dollars that are saved by stopping illegal immigration could be used to offset the unemployment insurance deficit.

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