Senate Considers Payroll Tax For Unemployment

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A Vermont Senate committee is proposing a tax on workers that would be used to help fill the state’s depleted unemployment insurance fund.

The Burlington Free Press says a worker making $40,000 a year would pay $80 under the proposed tax, which would raise an estimated $24 million a year.

Taxes on employers would also increase and there would be changes in who would be eligible for unemployment benefits, which would remain at a maximum of $425 a week.

Senator Vince Illuzzi says asking the employed to help pay for the unemployed is the fairest way to keep money in the unemployment fund.

But the proposal faces broad opposition. It’s unclear if it will become law.

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