The Obama administration has a tax increase plan to shore up the states’ unemployment funds. Current unemployment tax is a Federal minimum 6.2% on the first $7,000 earned, paid by the employer. The Obama plan would raise the limit to the first $15,000 earned — a tax increase of $496 on all full-time jobs.
True, he proposes to wait until 2014 for this to take effect. But low-paying jobs have been stagnating for decades, not just in this recession. We need to be lifting the tax burden from low-paying jobs, not increasing it. This is a terrible idea.