Extra South Dakota Unemployment Tax to Stick Around

From the files of “No, Tommy, taxes don’t every really die”:

The state’s unemployment fund has been deteriorating during the economic recession. Roberts says officials were hoping that things were starting to improve, until last week. She says a surcharge paid by employers that began last October and was expected to end by July might now continue into next year.

Yeah, things are just fine and dandy.

2 thoughts on “Extra South Dakota Unemployment Tax to Stick Around

  1. And the alternative is just letting the fund go broke and paying out no more unemployment checks. Unless you’re making the argument that public unemployment protection is a bad idea and should be abolished, we need to fund the program somehow. They’re running out of money because people need help. Do we stop helping?

    But hey, I’ll make a deal. We get out of the recession first. Then we reverse the situation: I’ll agree not to pile on the surcharge during the recession if you’ll agree to impose surcharges during high growth periods so we can replenish the fund when businesses are least vulnerable to tax increases. Deal?

    1. We can’t stop helping at the moment because we have a contractual obligation (much like w/other government insurance programs). We do need to renegotiate the contract to remove the obligation. Meanwhile, we should figure out how to fund this without imposing the surcharge. I doubt we’ve cut all the fat from the state budget.

      No deal. Sorry. It is not government’s job to protect my job or earnings. I’ve been unemployed several times over the years but have never taken unemployment–though eligible for it.

      Of course, that’s all a bit beside my point, which was that a tax is raised for specific reason and time but it doesn’t tend to go away because there is always a reason to extend it. Or, to put it very simply, no government wishes to give back a pay raise.

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