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Unemployment Insurance: States' Tax Financing Systems Allow Costs to Be Shared among Industries.

Publication: General Accounting Office Reports & Testimony
Publication Date: 01-AUG-06
Format: Online
Delivery: Immediate Online Access

Article Excerpt
GAO-06-769 July 26, 2006

In 2006, the Unemployment Insurance (UI) program is expected to collect over $37 billion in taxes from employers to pay $34 billion in benefits to unemployed workers. Under state UI programs, employers' tax contributions are experience-rated--that is, they reflect...

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...the extent to which they laid off workers who then collected benefits. To examine the equity of this system, we met with officials from five states, reviewed prior...

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