O'Malley Spewing More Disinformation On State's Unemployment Rate

Governor O' Malley goes off the deep end, once again, claiming that he has reduced the unemployment rate for Maryland Employers.  

Fact is - someone ought to stomp his butt - for him misstating the facts.  You see beginning in 2010 - O' Malley INCREASED the Maryland Unemployment Insurance rates on Maryland Employers by a WHOOPING - 366%

Tax rates were raised in 2010 for all employers, but the specific tax rate an employer pays is determined by the employer’s individual experience, factoring in whether the employer had laid off any employees in the past year. In Maryland, the first $8,500 an employee earns is taxable for unemployment insurance. Minimum rated employers - those who have not laid off - saw their rates increase from $51 per employee to $187 per employee. - (we're not making this stuff up folks). The rate increase for employers that laid off employees in recent years were raised higher in 2010, up to the maximum rate, which increased from $765 per employee to $1,147.50 per employee

State law requires the Department of Labor, Licensing and Regulation (DLLR) to review the Unemployment Insurance Trust Fund each September 30. The UI tax rate automatically increases if the balance of the fund falls below a certain level. There are six tax tables, ranging from the lowest (A) to the highest (F). Maryland’s Trust Fund has dropped from $774 million in January 2009 to a low of 50 million dollars in 2010. Because the ratio of the balance in the trust fund to the total taxable wages in the state is below 3 percent, Maryland will move from tax rate table B to rate table F. 

Table B (2009): 
Minimum tax rate .6% * $8500 = $51 (taxes paid per employee)
Maximum rate .9% * $8500 = $765


Table F (effective January 2010): 
Minimum tax rate 2.2% * $8500 = $187
Maximum tax rate 13.5% * $8500 = $1,147.50


The tax rates were up again for review on September 30, 2013 - and O' Malley decided he could now reduce the State Unemployment contribution rates  - as a result of a significantly smaller workforce  - due to excessive higher taxes in 2010, 2011, 2012 - that forced employers to downsize.  Fact is - his 2009 actions actually crippled Marylanders chances for trying to find a job.  

When I first saw the legislation come up in a House Bill in 2009 - I thought to myself - has the legislature lost its mind!!! Apparently not - as most Maryland employers simply started laying off or significantly reducing their Workforce.  Fact is, Marylands' actions of significantly increasing the unemployment rate - forced the downsizing of businesses - that have actually cost Marylanders jobs.  

So when it comes time to pull the lever at the voting booth - keep this information in mind as O' Malley has not given anyone a break throughout this difficult economic period.  If anything - his actions have led to businesses fleeing our great State.

Article by Beezer - SBYnews Contributor