Government Digest 03/05/10

Unemployment hike delayed
TALLAHASSEE —Shortly after convening, the Florida Legislature unanimously approved a bill pushing off a scheduled major increase in unemployment compensation tax rates. (See “Jobs Killer,” Dec. 18, 2009.) Gov. Charlie Crist then signed it into law. Many businesses would have seen unemployment tax increases of nearly 1,100% on April 1 without this bill. Businesses will still see the minimum per-employee tax rise from $8.40 to $25.20, though much less than the $100.30 rate previously set to take effect. But more increases will be necessary to begin paying interest on more than $1.1 billion the state has borrowed from the federal government to pay unemployment benefits.