Posted: Jun 30, 2011 7:35 PM by Michael Marsh
Updated: Jun 30, 2011 7:35 PM
Source: Associated Press
Almost every private employer in the U.S. will get a tax cut on Friday because a 35 year old temporary unemployment tax expires. It's $14 dollars a year for each of a company's workers, but it amounts to a 25 percent cut in federal unemployment taxes. Over the next ten years, the tax cut will save businesses more than $14 billion. The tax was passed in 1976 as a temporary way of helping to pay federal unemployment benefits. But it was extended eight times. Congress let it expire quietly while President Obama wanted to make the tax permanent.