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Unemployment Tax Targets Retailers

November 20th, 2009 by flanews

Florida’s unemployment rate is now at 11.2 percent, increasing point one percent over the last month. The small increase could mean the state’s unemployment crisis is slowing down, but as Whitney Ray tells us, the effects of double digit unemployment may stick with business owners for years in the form of higher taxes.

Fresh, made-to-order subs served with a smile are the ingredients of success for Metro Deli owner Rob Bazemore. But to keep his restaurant above water at a time when the economy is forcing many to stop eating out has been a challenge.

“Everybody’s got a little less disposable income. People are bringing lunches more and it’s affecting us already,” said Rob.

To add insult injury, Rob’s unemployment tax is scheduled to increase 12 fold, jumping from 67 dollars for his eight employees, to 800 dollars.

“We are doing okay, but it could change things,” said Rob.

The tax is being increased to help pay unemployment claims. The fund ran out of money in August. Now the state is borrowing money from the feds and asking Florida businesses to foot the bill. The Florida Retail Federation says now is not the time.

“Let’s not hammer small businesses and medium size businesses, who are just now starting to feel like things are getting better, with a two billion dollar bill,” said Rick McAllister, the President of the Florida Retailers Federation.

Retailers are asking the governor and lawmakers to look at the issue in a special session because the first payment of the new unemployment tax will be due in March.

Friday the Agency for Workforce Innovation gave indications help for the unemployed will be needed longer than expected.

“The unemployment rate is expected to remain above six per through the 2019,” said Rebecca Rust, Chief Economist for the Agency for Workforce Innovation.

Retailers are hoping a vote on decreasing the new tax can be taken in December or January, that’s when a special session for high-speed rail is rumored to be held.

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