A surprising turn of events in Vermont, well, surprising to me at least. I read today that legislators are proposing an additional payroll tax to help replenish the state's depleted unemployment trust fund. The 0.2% surcharge would be collected from individuals making over $40,000 a year and bring an additional $100 million in new revenue for the fund over the next four years.
Seems like a pretty bold move that goes way outside the box of the traditional model of employers paying in and benefits getting paid out. This is sure to cause some serious debate. Quite possibly even a ruckus.
It's interesting as there is an ongoing difference of opinion regarding who actually pays for unemployment insurance. Most say the employer of course (since they write the check), but some say it is the actual worker who pays the insurance in the form of lower wages (if not for the tax, the employer would have paid them more). Well, if this legislation is passed, at least in Vermont, there will be strong evidence on both sides of this running debate.
Tammy Mullin