American Staffing Association Opposes Extending Unemployment Benefits

December 6th, 2012

ASA Opposes Expansion of Unemployment Benefits American Staffing Association (12/06/12) Toby Malara

Earlier this week, the White House and Congress made proposals on how to avoid the so-called fiscal cliff-billions of dollars in government spending cuts and the expiration of tax breaks set to take effect in January. Although both plans focus mainly on tax increases and spending cuts, the president’s proposal is also seeking $50 billion in additional stimulus spending, which includes a one-year expansion of unemployment benefits.

As negotiations continue over the next few weeks, there will be political pressure to further increase spending for regular extended unemployment compensation and for emergency unemployment compensation-despite the fact that unemployment rates are decreasing and that the account funded by employer-paid taxes to cover regular extended benefits is already $20 billion in deficit.

ASA has joined other trade associations and more than 25 state chambers of commerce in a letter reminding congressional leaders that now is not the time to increase payroll taxes paid by employers and that it is imperative that any deal that is struck between the White House and Congress not make it more costly for businesses to hire employees.

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