Employers in nearly two dozen states are watching their state and federal taxes rise, according to The Wall Street Journal. Unemployment benefits and federal loan programs are contributing to the increases.
Taxes on businesses are the primary source for states looking to pay back unemployment insurance loans to the federal government. California currently has the highest tab, with $303.5 million paid and $9 billion still outstanding. Together, the 27 states that turned to the federal government after draining their own unemployment insurance funds owe $38 billion.
A Goldman Sachs analysis provided to The Wall Street Journal indicated that the Social Security payroll tax cut for workers did little to reduce the overall tax burden this year because of state-level tax increases meant to offset the expiration of federal tax credits.
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