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Nebraska One Of 33 States To Hike Unemployment Tax On Businesses

December 24, 2009 by  

Nebraska one of 33 states to hike unemployment tax on businesses On the heels of a surprisingly positive national unemployment report, where the jobless rate fell for the first time in months, the state of Nebraska has announced that it will be increasing the tax levied on businesses to help replenish their dwindling unemployment insurance fund, the Associated Press (AP) reports.

Nebraska is one of 33 states that are expected to increase unemployment tax in 2010 due to the high number of people who claimed joblessness over the past year.

Although most states are required by law to build up unemployment insurance funds in prosperous times to avoid tax increases in a recession, Nebraska is one of the many states whose funds have become depleted. Additionally, Nebraska’s constitution doesn’t allow it to borrow money from the federal government to help supplement state trust funds.

The hike in the unemployment tax will be especially detrimental to small business owners, who create about 60 percent of all new jobs in Nebraska.

"This is a job killer," said small business owner Rick Poore, quoted by the news source. "This isn’t going to help anything," he added.

"Hopefully employers have been preparing for this, but it will be a surprise to some," said Ron Sedlacek, general counsel for the Nebraska Chamber of Commerce, quoted by the Los Angeles Times. "It really just depends on how much they’ve been monitoring [the] situation," he added.

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  • George

    This is a shame. There has been far too little done to stimulate small businesses during this recession. If we really were interested in creating jobs in this country, then that’s where we would focus much of our attention. Of course, the large corporations and unions (who suck off them) would rather we buy GM and Chrysler and hire thousands of government employees (to suck off the system) to keep those jobs (and union dues) rather than helping small businesses. They get the gold. We get the shaft one more time……

    • James

      George, the only way to stimulate small businesses is for more customers to use their services. With real unemployment now at 17%, and still growing, that isn’t very likely. Stimulating banks and small businesses with borrowed money may keep them afloat for awhile but if that continues it will destroy the dollar.

      • George

        James,

        That’s certainly the desired way, if demand is based on sustained growth in the economy. The government’s one-time stimulus checks sent out to folks won’t do it, however, because they are temporary fixes.

        Certainly, the last thing you want to do to stimulate job growth is raise taxes on small businesses. Beyond that, you should lower taxes on them to provide them with additional cash so they can make investments in their companies and take some of the pressure off of reducing staff levels. Sure, all businesses won’t invest more, but enough will that this will create new demand for goods and services, and this will start the economy growing again. Businesses are always looking for new ways to reduce their costs, and improve their products and services to stimulate new customer demand. This is the way capitalist economies grow.

  • Robert

    Another hit to the recovery. If a small business was considering hiring more employees, this action puts that decision on hold. Small businesses are struggling to stay in business and the first chance they get to generate decent profit and expand, government comes in and screws up their plan. You mean to tell me that this state government couldn’t tighten it’s belt and find savings where the funds could be used to offset any shortfalls. Wait a minute, Ben Nelson could threaten to not vote for Obamacare when it comes back to the Senate for vote. He sure seems to be able to squeeze Harry Reid for money to sell his vote. So Nebraska, hold off a little while, Ben will get you the money you need from Washington in January. Just hold on buckaroos, help is on the way.

  • Bob Miller

    Well… the unemployment is at about 10%. The House and the Senate CONTINUE to extend unemployment benefits.. and this affects the States.. so naturally they will raise the charges to the Unemployment fund. Means a drastic loss of jobs or at least full-time jobs.

    This crap of a HEALTH CARE BILL will be the Waterloo of the OBAMA Kingdom and the total destruction of the Democrat Party. They are hoping that the American PEOPLE will have a short memory and continue to VOTE them based on LIES, PORK AND EARMARKS.

    The American Voter and all American PATRIOTS must organize now.. and vote out all those in the HOUSE and the SENATE that voted for this CARP of a Bill.

    Especial attention must be paid to the career politician.. those that have shown how corrupt they are, how little they care about the American Citizens.. and the CONSTITUTION.

    There will be NO QUARTER.. they must be VOTED OUT.

    Any Republican with over three terms is voted out as well.

    REMEMBER the SOBS on the HILL are responsible for the economy collapsing, for the 12 TRILLION NATIONAL DEBT that we currently owe.

    WE need to have no more pork, no more earmarks, no more corrupt bribes behind closed doors to PASS CRAPPY BILLS.. that no one reads, no one has a chance to vote..

    • George

      Sound advice.

    • Joe H.

      Bob Miller,
      That’s the STATED unemployment!!! The real unemployment is more like 17%!!!!

  • Mary

    Try Maryland—–This Dictatorship thrives in killing Small Businesses. THey survive on Gov. jobs provided by the Feds. This entire State Gov.(except for maybe four repub. really believe the peoples money should be their spending money. These clowns pay for nothing.

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