Tony Evers is setting up shuttered businesses for huge new tax bill

Photo courtesy of Fox 6 Now

On top of the overwhelming incompetence that the Tony Evers administration is showing related to Wisconsin’s unemployment claims. On top of the fact that he and his team knew they were going to have a flood of unemployment requests given that it was Evers who intentionally shut down half of the economy and put nearly half a million Wisconsinites out of they had to know a flood of claims was coming and have done little or nothing to adapt-and so- on top of a growing backlog of unemployment payouts that have now hit 726-thousand and are still growing. Now we learn that that same department of workforce breaking the not instituting an important protection for Wisconsin business owners that the governor and republican lawmakers passed weeks ago.

Gov Evers and Maggie Gau forced Wisconsin businesses to shut down...and now want to charge them for unemployment claims. we are going to force your workers out of their jobs and then hammer you employers because these people are no longer working. Do you get the problem here? People who know how the unemployment system works understand how outrageous this is.

Speaker Robin Vos and Scott Fitzgerald put out a letter that was also hand delivered to the governor..alerting him to the fact that his DWD...was not following this important change that Evers, himself, agreed to implement

“Dear Governor Evers:

“With Wisconsin unemployment soaring to a historic high of over 14%, unemployment insurance has unfortunately become the mainstay of the hundreds of thousands of unemployed workers in the state. As you know, most private employers are taxed to finance UI benefits at a level based on the business size and their past unemployment experience.

“Act 185, signed into law on April 15, included a provision that required UI claims specifically related to the COVID-19 emergency not be charged to a contribution employer’s UI account for the remainder of 2020. Instead, the law required that these claims be charged to the balancing account, which is supported by interest on the UI Trust Fund and the solvency tax paid by employers.

“The purpose of this provision was to attempt to mitigate the huge tax increases that employers most impacted by the COVID-19 crisis would see as a result of the normal June 30 calculation. The employers who would see the largest tax hikes are the same employers whose businesses have been severely impacted and may struggle to keep their doors open even as the state begins reopening.

“It is our understanding that the Department of Workforce Development (DWD) has chosen not to follow these provisions of Act 185. To date, the Department has not submitted rules or even a scope statement for rules to address these changes in the law. As a result of DWD’s decision not to follow the law, impacted employers will now face the huge tax increase the legislation sought to avoid when the June 30 calculation is made.

“And while the Department is falling short of its duty to employers, it is doing no better for the unemployed. With a growing backlog of over 700,000 benefit payments, and fewer than 500 employees processing claims for the hundreds of thousands of unemployed workers, DWD is failing at its most basic mission.

“This is simply unacceptable.

“Your administration, DWD specifically, is charged with administering the UI program and following state statutes. The outrageous decision to break the law is made worse by the fact that in so doing, the department is making it even harder for the employers impacted by the health crisis to get their businesses open and bring their employees back to work.

“It is incomprehensible that the department charged with workforce and employment would mindfully act to make it harder for unemployed workers to get back into the workforce. Time is short. We urge you to immediately correct this situation and assure that this law is being followed and that the tax rates will be reflective of legislative intent, codified by your signature.

Sincerely, Scott Fitzgerald Robin J. Vos Senate Majority Leader Assembly Speaker”

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