"he said he vetoed this bill because the fund the state uses to pay unemployment benefits will be nearly $20 billion in debt by the end of the year.
The fund the state uses to pay unemployment benefits is already more than $18 billion in debt. That’s because the fund ran out of money and had to borrow from the federal government during the pandemic, when Newsom ordered most businesses to close and caused a massive spike in unemployment. The fund was also beset by massive amounts of fraud that cost the state billions of dollars."
The reasoning and background, if anyone is curious
I want to know more about the fraud. At what level is/was the fraud happening?
Also the “Newsom ordered most businesses to close.” I guess I thought it was a pandemic that had ordered most businesses to close?
PPP was notoriously fraudulent. Big corps we’re taking PPP loans
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The fund ran out of money. What a fucking mess. How can a state simultaneously have the richest companies in the world and not be able to fund basic social support systems?
Because the state serves the richest companies not the people. Why else would California’s corporate tax be lower than their income tax?
But it’s the good state
I thought the whole point of paying you union dues was that when a strike happens, the union covers a portion of your salary like unemployment.
It’s not an unlimited fund, which is why the UAW strike isn’t at every single plant for example. Policies like this would greatly strengthen unions by allowing much longer and more widespread strikes.
Which is where Newsome’s line is.
That’s what Teamsters does. No idea what’s going on here.
How is this world news? Doesn’t America have enough news communities?
Murica is the world, duh
If only workers paid into the unemployment fund every paycheck, then there’d be no argument for keeping their money from them. Oh, wait… we do.
Unemployment is funded by a tax on employers, not employees.
This is 100% correct. Sadly it’s not as transparent as it should be and quite a lot of corporations have ways of getting around it. Not to mention during COVID there was a lot of taking from the fund but nearly no returning.
That’s not how tax incidence works. A tax is applied to the transaction, and its burden depends on who has more bargaining power, not on who writes the check.
It’s called FUTA. Look it up. Also, there’s likely a state equivalent wherever you reside.
I think that the argument is that if an employer can afford to pay a worker $30,000 per year and the unemployment tax is $3,000 per year then the employee gets $27,000 per year. So the employee effectively paid that tax, not the employer, even though the employer is the one who sent the money and the employer is the one who is liable for the money.
They just pass the burden onto the employee. They have to because that’s just how it works. Just like the customers pay for a restaurant’s rent in the form of an increase in prices to cover the cost.
There is no act that changes how tax incidence works.
No, you don’t, lol. Your employer does.
I’m rabidly pro-union but I’m OK with this. The union should provide.
Employers should be forced to pay striking workers anyways. Fuck em. Burn the whole system to the ground, it’s exploitative and abusive and it has extracted untold wealth from the working class for centuries.
Thats the third most idiotic thing ive ever heard
Are you a millionaire? If not, why are you defending people who are? They’re actively exploiting you, making big bucks off of your hard work, and you’re calling me an idiot?
“Rabbidly pro-union” and “as left as they come”, no doubt lol.
This is the best summary I could come up with:
Gavin Newsom vetoing a bill Saturday that had been inspired by high-profile work stoppages in Hollywood and the hotel industry.
That’s because the fund ran out of money and had to borrow from the federal government during the pandemic, when Newsom ordered most businesses to close and caused a massive spike in unemployment.
Labor unions had argued that the amount of workers on strike for more than two weeks is so small it would not have had a significant impact on the state’s unemployment trust fund.
Of the 56 strikes in California over the past decade, only two lasted longer than two weeks, according to Democratic state Sen. Anthony Portantino, the author of the bill.
“This veto tips the scales further in favor of corporations and CEOs and punishes workers who exercise their fundamental right to strike,” said Lorena Gonzalez Fletcher, executive secretary-treasurer of the California Labor Federation.
The legislation was an attempt by Democratic state lawmakers to support Southern California hotel workers and Hollywood actors and writers who have been on strike for much of this year.
The original article contains 509 words, the summary contains 178 words. Saved 65%. I’m a bot and I’m open source!
