Tax Workers? Yeah, That’s Brilliant
A state advisory board is considering a new tax on workers to help bail out the beleaguered state trust fund that pays benefits to the unemployed….[It] could take the form of an addition to the tax that employees already pay into the state’s Temporary Disability Insurance (TDI) program. Revenue so raised would be diverted to the state unemployment insurance trust fund.
The TDI tax rate for 2010 is 1.2 percent of the first $57,900 of a worker’s wages. Raising the TDI tax rate to 1.3 percent for 2011 would yield an extra $13 million or so, according to state labor agency calculations. (The increase could amount to a tax of $57.90 a year for higher-income workers, less for lower-income workers.)