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Ohio


Liberal think tank says Ohio unemployment tax burden is crushing business
Says a state tax hike could help
by WKSU's STATEHOUSE BUREAU CHIEF KAREN KASLER


Reporter
Karen Kasler
 
In The Region:

For three years, the fund that pays out benefits to unemployed Ohioans has been broke, and the state has been borrowing from the federal government to write checks to jobless people.

The governor’s big budget update passed this month and moved $25 million toward paying the interest on that $1.8 billion dollar debt. But a progressive leaning think-tank says more needs to be done.

Zach Schiller at Policy Matters Ohio suggests a broad-based state tax increase to pay off the debt as quickly as possible – because businesses are getting hit with more taxes in the meantime.

SCHILLER on escalating unemployment costs

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SCHILLER on what will happen next

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 “As of right now, employers in Ohio are paying $21 for every employee more this year in federal unemployment tax to pay off the debt. Next year, that will go up to $42. The year after that, it will go up to $63. And so, we are seeing tax increases even if the state of Ohio isn’t enacting them.” 

Schiller says higher taxes paid by businesses are in addition to the interest the state pays on the debt. The state paid $70 million in 2011, and an estimated $60 million will be paid this year.



Related WKSU Stories

Wednesday, March 21, 2012

Lower jobless rate brings reduced benefits

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