Scott Mooneyham has an important reminder of how North Carolina ended up in its current predicament with unemployment compensation—tax break after tax break for corporations.
As for the financial recklessness part of the story, it goes back to the 1990s. At that time, the unemployment fund enjoyed an $800 million surplus. Then legislators cut the taxes, five separate times. The bill is about to come due for those tax cuts….
….Shuffling the debt onto taxpayers as a whole, or reducing unemployment benefits, is just as economically problematic. It will also mean less money moving through the economy.