When Republicans and Democrats clashed last year over whether to extend jobless benefits for the long-term unemployed, the question was over funding -- should we add to the debt or should we use unexpended stimulus money? Well, now that state unemployment-insurance trust funds are running dry, President Obama has finally announced his solution: Allowing the states to increase taxes on business.
From the Wall Street Journal:
The proposal would aim to restock strained state unemployment-insurance trust funds by raising the amount of wages on which companies must pay unemployment taxes to $15,000, more than double the $7,000 in place since 1983.
The plan, which would take effect in 2014, could increase payroll taxes by as much as $100 billion over a decade, according to a person involved in its construction.
One day after speaking before the U.S. Chamber of Commerce, where he talked about the need to allow business to create jobs, Obama provides a more "politically palatable" way for states to tax them. This is also two days after telling Bill O'Reilly in a Fox News interview that he didn't raise taxes once (even Politifact calls shenanigans).
I guess the lesson here is that whenever the president talks about how he's not going to raise taxes, assume the opposite.