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Another Voice: New York must deal with unemployment insurance crisis

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A recent report from New York State Comptroller Thomas DiNapoli paints a troubling picture about New York State’s Unemployment Insurance Trust Fund. The report makes clear that employers across New York State – many of which are still struggling to recover from the impacts of the Covid-19 pandemic – are now facing a $9 billion tax increase.

As of Jan. 1, 2020, New York’s Unemployment Insurance Trust Fund was at $2.6 billion – an all-time high amount. However, according to the U.S. Department of Labor, New York was below the recommended standard for solvency. The only state that was worse off in terms of solvency was California.

Despite enduring significant job losses and an economic downtown during the Great Recession, New York was ill-prepared for another crisis. To address the trust fund shortfall, New York borrowed $11.9 billion from the federal government. As of Sept. 2, New York still owes the federal government $9 billion. The repayment of the loan balance and the requirement to replenish the trust fund will result in some businesses paying a 254% tax increase in 2025 compared to their tax........

© The Buffalo News

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