XPost: alt.california, alt.fan.rush-limbaugh, alt.society.liberalism   
   XPost: talk.politics.guns   
   From: incompetent.boob.newsom@disney.com   
      
   On 05 Mar 2022, Kurt Nicklas  posted some   
   news:t00hud$25np7$100@news.freedyn.de:   
      
   > Dechucka wrote   
   >   
   >> Newsom and Pelosi are both common thieves and Democrats are too   
   >> fucking stupid to realize it.   
      
   One potential consequence of California's ballooning budget deficit:   
   Higher taxes for businesses, with increases possible every year for the   
   next decade.   
      
   Business owners pay a tax on each of their workers. The money goes into a   
   fund that states use to pay unemployment benefits when people lose their   
   jobs. During the coronavirus pandemic, so many people lost jobs that many   
   of these funds ran out of money.   
      
   Twenty-two states borrowed from the federal government so they could keep   
   paying unemployment benefits. Those states must pay that money back, plus   
   interest. Most states have already done this. But California is one of   
   five states that hasn't. The state owes $18.9 billion.   
      
   If California doesn't pay the money back, businesses have to do it through   
   higher taxes. California was supposed to start paying off the debt this   
   year with $1.5 billion — $1 billion toward the debt, plus another $500   
   million to help small businesses pay their increased taxes.   
      
   But that was before California had a $22.5 billion budget deficit. Now,   
   Democratic Gov. Gavin Newsom wants to cancel $1.25 billion of that   
   spending to help cover the state's budget shortfall. That means businesses   
   will have to pay an additional $21 per employee in federal unemployment   
   insurance taxes this year. That tax will keep increasing by $21 every year   
   over the next decade that the debt is not paid off.   
      
   It could take at least 10 years for businesses to pay off the debt,   
   according to the nonpartisan Legislative Analyst's Office. Meanwhile, the   
   Newsom administration expects California will have a multibillion dollar   
   budget deficit not just this year, but also in each of the next three   
   years — meaning it's not likely the state will start paying off the debt   
   anytime soon.   
      
   California could have paid off the debt, or at least a sizeable portion of   
   it, in the past two years when it had a combined general fund budget   
   surplus of $119.4 billion. But state officials didn't do that, to the   
   frustration of business owners like Denise Duncan who are now stuck paying   
   the higher tax.   
      
   The tax increase won't be a significant burden for Duncan this year   
   because she only has two employees. But she said it angers her she's stuck   
   paying for something that wasn't her fault after the government ordered   
   many businesses to shut down during the pandemic.   
      
   “We're getting hit over the head with hammers every time we turn around   
   with increased costs, whether it's gas doubling, whether it's insurance   
   and utilities,” said Duncan, owner of AT Industrial Products in Pomona.   
   “They had a surplus. So why didn't they use it?”   
      
   One reason is simply the massive size of California’s debt. As the   
   nation’s most populous state, California also has the largest economy and   
   the most workers. It’s $18.9 billion debt is more than twice as large as   
   every other state.   
      
   Instead of paying off its unemployment debt, the Democrats in charge spent   
   the money on other things. They gave $21.4 billion of it back to   
   taxpayers, sending three rounds of stimulus checks to help people weather   
   the pandemic and offset rising gas prices. The rest of it went to things   
   like public schools, roads and bridges, health care and homelessness   
   programs.   
      
   “The Governor's January budget proposal delays some longer-term debt   
   payments to meet the state's more immediate needs,” Newsom spokesman Alex   
   Stack said. “Having said that, we're still allocating $250 million to pay   
   down this debt, which will save businesses money.   
      
   Stack noted the governor will release an updated budget plan next week,   
   adding "he looks forward to working with the Legislature and stakeholders   
   on state spending priorities.”   
      
   Legislative Analyst Gabriel Petek, whose nonpartisan office advises the   
   Legislature on budget issues, told lawmakers earlier this year that even   
      
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   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)