by Datechguy | July 6th, 2011
This is it:
Today marked the demise of the “temporary” 0.2% Federal Unemployment Tax Act surtax, originally enacted in 1976 and subsequently extended six times. The purpose of the “temporary” surtax was to replenish revenues used to fund Federal unemployment benefits paid in the wake of the 1973-75 recession.
Representative Dave Camp:
“The fact that it has taken 35-years for this ‘temporary’ tax to expire clearly illustrates the dangers of higher taxes – once in place, they are unlikely to ever go away,” Rep. Dave Camp (R-Mich.), the Ways and Means chairman, said in a statement. “We need employers paying more salaries, not paying higher taxes.”
Accounting Today reports the tax had been extended 8 times since it was set to expire.
The moral of this story? The moment you allow a new tax, you are giving the Federal or state government a new way to feed the beast and support patronage on the state level.
That works locally, as well.
There are always whiners who desire the implementation of an income tax here in NH, to “lower” the property taxes.
Ha.