Howell: “How can you call that turning your back on unemployed workers?”

Speaker William Howell (R-Stafford) took exception yesterday to the governor’s comments that Republicans somehow have ignored the unemployed by turning down $125 million in federal stimulus funds (with massive strings attached – basically it forces the state to expand the benefits and keep them, even after federal dollars dry up); comments made by the governor despite benefits being expanded from 26-59 weeks and an additional $62 million of federal stimulus dollars being used from unemployed programs.

  • The problem is that many of the Republicans do not have a philosophical leg to stand on. Standing against unemployment benefits as a whole is the principled stand. Allowing a year of benefits is neither “conservative” nor fiscally responsible.

  • “Standing against unemployment benefits as a whole is the principled stand. ”

    Nonsense. Virginian workers pay unemployment insurance through payroll deductions.

  • Jack,

    Not in Virginia. Only three states require mandatory payroll deductions and only two states allow optional payroll deductions. Virginia is not one of them. In Virginia, just like in most states, employers pay for unemployment compensation.

  • Get a grip, David — payroll taxes are borne by the employees, not the employers. Taxing employers on payroll is mere slight-of-hand.

  • I hate to say this Jack, but Little David is right.

    While it is correct that an employer does not pay taxes, he only passes the cost of doing business, LD has a solid grip on this.

    Where does the employer recover taxes from? She either raises the prices of her product that YOU the consumer pay or possibly as you allege, cuts costs elsewhere. This could include not giving a raise to her employees. If employees pay taxes on their income, the government over time actually has reduced earnings by placing that tax. The deflationary effect of taxing business reduces their abilty to be profitable and be taxed. It also contributes to an inability to pay for labor which income taxes are dependent on.

    Virginia does the right thing by turning down that batch of stimulus funding and the strings attached. The federal level basically is trying to bribe/extort states to take actions they deem harmful with their own tax dollars. This is so bad, Virginia is willing to sit and watch the Fed spend our tax dollars in another state in order to elude the harmful side effects mandated by accepting the money.

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