Not content with wasting billions of tax dollars on a high-speed station to nothing and poor programs that simply make the problem worse, Gov. Gavin Newsom (D-CA ) has also presided over the bankruptcy of the state’s unemployment insurance program — a problem that will now require higher taxes on employers, which will only make the state’s unemployment rate, already the nation’s highest, even worse.
The main problem with California’s employment healthcare system is that it essentially promises more in advantages than it collects in income from employers. Californians applying for employment benefits receive$ 385 a month on average, which is higher than the average nationwide profit. But because the condition is so cheap, that pay only represents about 28 % of the average American salary, a percentage that is below the national average. When on employment, Californians usually spend days longer on the program than do recipients in different states.
When COVID-19 hit, most says found their existing employment techniques overwhelmed with fresh claims, but the federal government finally stepped in with low-interest level loans to keep them liquid. Most claims later used offers from the American Rescue Plan to pay these federal authorities money back.
But Newsom chose a different way. Instead of being financially responsible by using the funds from the American Rescue Plan to pay off debts, Newsom used that money to give signal investigations to Californians. Not only did these stimulus checks make prices in California worse, but they also left a wide gap in the state’s resources.
The initial interest rate on the product from the federal government to California had a generally low 1. 6 % interest charge. The federal government is presently charging 2. 6 %, and that is expected to rise even further, as is the state’s unemployment insurance deficit ( which now stands at$ 21 billion ).
Specialists say California had now increase its poverty plan taxes from the latest 1. 2 % on the first$ 7,000 of wages to more than 3. 5 %. Combining both state and federal unemployment taxes, California businesses now have to spend about$ 500 more in unemployment insurance taxes per employee per month.
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These higher fees on work will produce California an even more costly place to do business, driving the state’s now country-high unemployment rate of 5. 3 % even higher.
But at least Newsom got those trigger checks out just before his remember vote!
Heckuva career, Gavin!
