Research Report Unemployment Insurance Financing Options in Massachusetts
Wayne Vroman
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This report describes and analyzes the main proposals offered during 2003 to modify the financing of unemployment insurance (UI) in Massachusetts. It includes a brief historical review of the state's UI funding from the late 1960s to the present. The proposals are described and compared with attention to setting tax rates to improve the assignment of benefit charges to individual employers. The paper also undertakes a simulation analysis of changes in the UI taxable wage base. Recommendations are made to improve UI financing. An annex examines legislation of late November 2003 in light of the analysis of the report.
Research Areas Taxes and budgets
Tags State and local tax issues Taxes and business Unemployment and unemployment insurance
Policy Centers Center on Labor, Human Services, and Population