Policy
Matters Testifies
on
Unemployment Compensation
Tax
Avoidance
State unemployment insurance systems are
losing millions of dollars a year due to company manipulation of their tax
rates. Under such schemes, known as SUTA dumping, companies transfer their
employees to other entities in order to avoid paying the unemployment taxes
that they should be paying. State statistics provided to the Government
Accountability Office in 2002 show that the average amount of taxes
underpaid by SUTA-dumping businesses was more than $600,000. Last year,
Congress passed a bill requiring states to crack down on such practices, and
Senate Bill 81 has been introduced in Ohio in part to conform to federal
requirements. However, the bill does not go far enough. On April 5, 2005,
Policy Matters Ohio’s Wendy Patton testified before the Senate Insurance,
Commerce and Labor Committee and recommended ways to strengthen the bill.
Read Wendy Patton's
Ohio Senate Committee Testimony (pdf)
Coverage
of Wendy Patton's Testimony - May 2005
Gongwer News Service,
May 03, 05
Coverage
of Wendy Patton's Testimony - April 2005
Gongwer News Service,
April 05, 05
Fair Use Notice
4/5/2005
