February 9, 2011

OBAMA STARTS TO BAIL OUT THE STATES: “States that have borrowed billions of dollars from the federal government to cover the soaring cost of unemployment benefits would get immediate relief from the Obama administration under a plan to suspend interest payments for the next two years.” By letting states keep unemployment insurance taxes down, this is probably good for employment, but can the Federal government — which is also broke — afford it? And what it gives in lower taxes now, it takes back later, conveniently after the election. “Starting in 2014, Obama would target companies for sharply higher payroll taxes to help states replenish their depleted unemployment funds and repay their debts to Washington.”

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