At the Pennsylvania Chamber of Business and Industry forum last week, Democratic gubernatorial nominee Dan Onorato said raising U-C taxes on employers and employees would be “devastating,” especially if the federal government holds Pennsylvania to a rapid repayment schedule. Onorato said he would do everything in his power to reduce, delay and spread out the payments, but if that effort fails, he would propose a mix of three options: enact higher taxes on employers, demand greater payroll contributions from workers, and, reduce unemployment-compensation benefits. Republican Attorney General and gubernatorial candidate Tom Corbett said his first option would be to raise workers’ payroll “contributions.” Whether these contributions are in fact, taxes, has become the subject of jokes and jibes. Ever since Corbett took a no-new-taxes pledge this summer, the semantics around the words “tax,” “fee,” and “contribution” are hotly debated. WITF State Capitol Bureau Chief Scott Detrow weighs in today with an interesting take on it all from the no-tax-hike-pledge originators, Americans for Tax Reform.
Our panel includes some of the loudest voices in the fight: Rick Bloomingdale, president of the Pennsylvania AFL-CIO; Sam Denisco, director of government affairs for the PA Chamber; and Patrick Beaty, deputy secretary of the state Department of Labor and Industry. The Harrisburg Patriot-News reported that Beaty said both federal and state court rulings have interpreted the word contribution to mean a tax. Pennsylvania provides up to 26 weeks of jobless benefits to workers who lose their jobs. However, to cope with the recession, the federal government extended the benefits. Unemployed individuals can collect up to 99 weeks of emergency benefits. The average U-C check in PA is $300. Employers pay a quarterly tax on the first $8,000 of workers' salaries, an amount that hasn't changed in 25 years. Employees' paycheck deductions amount to about 80 cents on every $1000 in salary.
The situation looks bleak for the jobless. L&I put out a report last week that noted that by the end of the year, 157,500 Pennsylvanians will no longer be eligible for long-term U-C benefits. That means they will have been out of work for 99 weeks. And that number could double by April 2011. "We are facing the longest period of high joblessness since the Great Depression," Labor Secretary Sandi Vito told the Pittsburgh Post-Gazette. Governor Rendell appointed a council of business, labor and state legislators to examine ways to reform the system and shore up the U-C fund. That council has failed to reach agreement on a solution. But, as they say, death and taxes cannot be avoided and starting in January, employers' costs will go up as they have to begin repaying the interest owed on the money Pennsylvania has borrowed. The Tax Man Cometh, now how about an equitable and affordable solution? Add your voice to the conversation tonight at 8 at 1-800-729-7532 or email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
