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California governor rejects bill to give unemployment checks to striking workers (apnews.com)

submitted 2 years ago by NightOwl@lemm.ee to c/worldnews@lemmy.ml

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[-] Haus@kbin.social 18 points 2 years ago

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.

[-] Letstakealook@lemm.ee 4 points 2 years ago

Unemployment is funded by a tax on employers, not employees.

[-] Heratiki@lemmy.ml 3 points 2 years ago

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.

[-] explodicle@local106.com 3 points 2 years ago

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.

[-] Letstakealook@lemm.ee 0 points 2 years ago

It's called FUTA. Look it up. Also, there's likely a state equivalent wherever you reside.

[-] nogooduser@lemmy.world 5 points 2 years ago

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.