Walker Breaks No Tax Increases Pledge: Last Week Sent a "Special Assessment" to All Employers | Wis.Community

Walker Breaks No Tax Increases Pledge: Last Week Sent a "Special Assessment" to All Employers

In a move that shows that Walker is truly not interested in keeping his no tax increases pledge or creating jobs, the Walker administration sent a tax bill to all Wisconsin employers for a "special assessment" to cover the increased number of unemployed workers during the recent recession:

Letters are being mailed the week of June 20 notifying affected Wisconsin employers of a Special Assessment for Interest that will be billed in early August 2011 and due in September 2011 to make a federally required interest payment on an outstanding Unemployment Insurance (UI) Trust Fund loan.

Due to the recent national recession, many states including Wisconsin exhausted state funds to pay UI benefits to record numbers of claimants. As a result, states such as Wisconsin were required to borrow from the federal government to pay this record number of claims. Currently, Wisconsin is one of 30 states with outstanding balances to the federal government.

The federal government began charging states interest on these borrowed funds effective 1/1/2011, and the Special Assessment for Interest is the mechanism Wisconsin has in statute to cover this interest payment.

The funny thing about this, is that even if an employer has never laid-off anyone, closed down a plant to move to China, or done anything else that requires their workers to use unemployment insurance, they are being punished the same way as employers that have put the most strain on the unemployment system. 

 

Published

July 1, 2011 - 12:43pm

Author

randomness