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Tag: FUTA vMichigan

Michigan Businesses Hit With FUTA Tax Increase

By Crippy, Section News
Posted on Tue Jun 30, 2009 at 07:21:03 PM EST
Tags: FUTA vMichigan (all tags)

As if Michigan wasn't already sufficiently hostile to business, Michigan employers are being hit with a FUTA (Federal Unemployment Tax Act) tax increase. So far, The People's Republic of Michigan is the only state to be assessed the tax increase. The tax rate is increasing from .8% to 1.1%

From Biz Actions dot com:

Michigan is currently the only state to receive a FUTA rate increase, in an attempt to pay back the amount owed to the IRS as a result of our nearly 14% unemployment rate. This increased rate will, in turn, repay the funds Michigan has borrowed from the Federal Government.

More good news for Michigan businesses is on the horizon as well.

Michigan employers can expect to see 2 more rate increases on their FUTA taxes. FUTA will increase to 1.4% in 2010, and 1.7% in 2011.

This is the perfect Marxist solution for a state with 14%, and rising unemployment, mired in an eight year, one state, recession. Perhaps by 2011, Michigan can boost its unemployment rate to 20%.

On the bright side, Granholm is still giving tax breaks for the movie industry. This begs the question, if lowering taxes entices businesses to come to Michigan, why doesn't Lansing cut taxes across the board?

God help us!

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