Unemployment payments
Thankfully, at least one government body isn’t embracing the taxing philosophy outlined above.
On Tuesday, the state Employment Security Council voted to reduce Nevada’s unemployment tax in 2008 as a way to inject more cash into the economy.
Allowing employers to keep more of their earnings will “provide an economic stimulus, albeit a small one,” said Cindy Jones, the commission’s administrator who is expected to implement the recommendation next month.
What a refreshing concept.
Under the change, the average tax rate paid by employers — the actual assessments vary depending on a company’s history of laying off workers — will fall to 1.33 percent in January. That’s down from the 1.38 average rate that has been in effect for three years.
Even with the reduction, the trust fund — which pays state unemployment benefits to those who lose their jobs — will increase to $865 million next year, up $70 million from 2007.
The commission’s move, while modest, is welcome. As is recognition of the fact that leaving more money in the private economy will benefit the state.