Report: White House Looking To Business To Bolster Unemployment Aid

According to a report from the Wall Street Journal, the upcoming budget proposal from the White House will attempt to more than double the level of wages that companies are required to pay unemployment taxes on.

Currently, companies are required to pay taxes on wages up to $7,000. Under the new guidelines, it will be raised to $15,000. If passed, the change would be scheduled to go into effect by 2014.

The change could raise unemployment taxes by $100 billion over a decade, according to the Wall Street Journal’s source,. The White House will reportedly attempt to counter the costs this would put on companies by adjusting the federal tax rate for unemployment insurance. Still, states will not be required to issue similar adjustments, which could mean higher taxes for businesses.

The move, which will likely not be officially announced until the budget proposal is unveiled, will almost undoubtedly draw ire from the business community, despite the White House’s recent attempts to mend strained relations by appointing pro-business figured to key administration posts and promising to roll-back excessive regulation.

The administration’s budget proposal is scheduled for release next week.