Fair Share Treatment for Small Businesses

The prolonged downturn in Wisconsin’s economy has contributed to the deficit in the state’s Unemployment Compensation Reserve Fund. According to the Wisconsin Taxpayers Alliance, the deficit in this account could reach $2.4 billion in 2011.

Since February, 2009, the State of Wisconsin has been borrowing money from the federal government to pay unemployment benefits. The Wisconsin Department of Workforce Development projects the outstanding loan from the federal government to pay for unemployment benefits to exceed $2 billion by 2012.

The deficit in the state’s Unemployment Compensation Reserve Fund will have to be closed and the money borrowed from the federal government will have to be repaid. All Wisconsin employers must be included in the discussion to resolve these issues.

WIB believes small employers should not be expected to contribute their fair share.