Reform State Unemployment Tax Act
Massachusetts State Legislature and Governor Baker
This petition is sent to Massachusetts State Legislature leadership and Governor Baker on a weekly babsis via email. By signing this petition your name is added to the list.
Click here to read the full proposal and review data
The middle class has been squeezed to the point of making the American Dream impossible to afford. While some would argue that corporations are to blame, this proposal explains a more intricate and uncomfortable problem. There are laws that deliberately burden the lower economic classes and small businesses, laws that are rooted in racism and marginalization of women. But, to those without a thorough understanding of economics, law, or accounting, these pieces of legislation do not look like the wolves in disguise that they are. The Massachusetts General Law Part 1 Title XXI Chapter 151A Section 14, makes inequalities look like social problems, as opposed to being the direct result of systematic imbalances created by outdated legislation, legislation that minimizes business expenses and creates tax loopholes, which is lobbied for by large institutions, not the private citizen. This results in corporations paying less into the social system from which they benefit. The average citizen lacks the time and the necessary knowledge to advocate for their needs properly, which allows Big Business the power to control our society and economy.
We have an opportunity right now, as COVID-19 exposes cracks in the system that have long been there. We must unite to make the necessary changes in legislation that would support citizens rather than corporate profits. Employees, employers, and the Commonwealth of Massachusetts all will benefit from State Unemployment Insurance reform. Larger corporations have not been contributing into the unemployment system as they should because of antiquated and biased legislation. This is our opportunity to save small businesses and enact legislation that puts human life before profits.
A unique aspect of our current reality is that, for the first time, three groups that often have conflicting interests in our economy, can now be on the same side of one issue - small business owners, the working class, and State Legislators can be allies. Employers will face a large tax liability increase through no fault of their own and at a time when their businesses are in jeopardy; the employees have experienced unemployment benefits that pay too little to survive; and the Commonwealth has failed to create a healthy state unemployment trust fund for decades and is now in need of a solution to increase the trust fund revenue. Finally, the service industry is being hit the hardest of them all. This industry is a microcosm that is representative of our greater economy’s burdens. Ownership is represented by entrepreneurs who fall in the middle class. Employees are a collection of middle and lower economic class workers who are breadwinners, students, artists, and immigrants; this industry is the heart of America.
Article on proposal and advocacy updates
Click here to read the full proposal and review data
Watch this interview for further explanation on why State Unemployment Tax Act Reform is important. Thanks to Anna Callahan and Movement 34 for this interview.
Petition by
To:
Massachusetts State Legislature and Governor Baker
From:
[Your Name]
The Unemployment Insurance program is broken. The benefit payments do not factor in purchase power, the tax structure is regressive, an employer’s tax rate increases when layoffs occur through no fault of the employer, and smaller businesses are paying at higher rates than large businesses. The trust fund that holds the money to distribute benefit payments hasn't collected enough revenue to comply with the Department of Labor standards for decades. The consequence of not hitting these targets, is paying interest on loans that would otherwise be interest-free. The projected unemployment trust fund deficit for 2021 is 7 billion dollars, and the Commonwealth will be borrowing funds from the US Treasury costing the Massachusetts taxpayers 120 million in 2021. Additionally, the Commonwealth will lose out on the FUTA tax credit worth 1.4 billion dollars.
I want an equitable and easy to understand tax structure. One that would create a solvent trust for normal times and prepare us for future economic downturns, natural disasters, and economic shifts. Benefit payments should factor in purchase power, the experience rating system should be eliminated, and the tax base should capture the full base and not be capped. Stop freezing the tax rates.