Obama to Propose Unemployment Taxes

This may not sit well with the Chamber of Commerce, which President Obama told he'd lower taxes on Monday. Obama’s budget proposal will allow states to collect more payroll taxes in order to replenish unemployment-insurance programs, according to The Wall Street Journal. The budget proposes allowing states to tax up to $15,000 for unemployment taxes, rather than the current $7,000. The change would give states access to a large new pool of funds without actually requiring them to raise taxes. While it will be included in the 2012 budget, to be released Monday, the new rule would not take effect until 2014, in order to avoid new taxes during the economic recovery. The plan will also require congressional approval.