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Home | PA Chamber: Misguided UC Report Misrepresents Key Facts
For Immediate ReleaseDecember 7, 2022
For more information, contact Jon Anzur, Email | 717 720-5447
Pennsylvania Chamber of Business and Industry Vice President of Government Affairs Alex Halper offered the following comments in response to an Unemployment Compensation report recently released by the Keystone Research Center:
“Unemployment compensation is a critical safety net to help individuals who were laid off through no fault of their own as they actively seek new employment. We agree with the Keystone Research Center that Pennsylvanians need a financially stable system. Unfortunately, their recently released report calls for potentially massive tax increases on employers and misrepresents key facts to reach a misguided conclusion.
“The report refers to the amount of wages on which employers pay taxes per employee, known as the ‘taxable wage base.’ In Pennsylvania, the taxable wage base is $10,000. The report repeatedly claims that this amount is too low and is “less than 33 states and far below Washington State’s $62,500.
“The Keystone Research Center leaves out the key fact that employer taxes are based on both the ‘taxable wage base’ and the rate paid on those wages. According to the most recent U.S. Department of Labor data, Pennsylvania has the number one highest rate paid on those wages in the country.
“In fact, Pennsylvania employers pay the 14th highest average UC tax rate in the country; higher than 36 other states…including Washington State.
“The fact is that Pennsylvania employers invest considerably into the UC system – far more than most states. Policymakers should reject any proposal that seeks to achieve a more financially stable system by simply raising taxes on employers.
“We look forward to engaging in constructive, honest discussions and working with the legislature, Gov.-Elect Shapiro and his administration, UC stakeholders, and advocates on policies to improve the UC system.”
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The Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business association, with its statewide membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of BusinessTM.