Tax Foundation Says NYS One of Three States That Could Run Out Of Money Soon

The following information was reported by the Tax Foundation:

• Another 4,267,395 people in the U.S.  filed for unemployment during the week ending April 18, according to the Tax Foundation.
• “Unfortunately, many states entered the crisis with woefully inadequate unemployment compensation trust funds, with the possibility that three states—California, New York, and Ohio—could run out of money to pay out claims filed to date by the end of April.”
• Unemployment is at 12.53% throughout the United States. New York State’s unemployment rate is at 16.36%
• More than 20 percent of the civilian labor force has applied for or is receiving benefits in three states: Michigan (21.8 percent), Connecticut (21.5 percent), and Vermont (20.9 percent). Another 13 states have rates of 15 percent or higher.
• If all the states’ funds were pooled together, they could cover about eight weeks of payments based on current claims levels, but wide disparities exist.
• As more firms lay off employees and unemployment increases, states’ unemployment insurance taxes will rise on businesses that can least afford to pay.