Monday, February 14, 2011

What Not To Do...

The US economy appears to be headed in the right direction with corporate earning soaring and investors steadily moving more and more funds into the equity markets, but there is still one major problem.  The approximately 13.9 million Americans without work.

While most would consider it a "no-brainer" to incentivize corporate hiring, South Carolina is doing the opposite.  State Legislature reformed the employment insurance tax last year to help fund the growing number of unemployment claims in the state.  The tax reform is aimed at those companies who have laid off the most workers historically.  In theory this makes sense because these companies are obviously the largest contributors to the unemployed pool. Economic conditions have improved drastically over the past year and these same companies are ready to start hiring again, but not in South Carolina where they face a potential 200% and higher  increase on their employment insurance tax bills.

One South Carolina company is considering heading south of the border for their hiring because of the reform.

Manufacturers say rising jobs tax could threaten hiring in South Carolina

1 comment:

  1. The unemployed are suffering more ways than one for sure. But, in some ways I think that they should actually try possibly something different to get back to work, meaning in some cases they have gotten comfortable with unemployment compensation...I could be wrong.

    Thanks for the post.