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File 014498

Virgin Islands Daily News - Unemployment Tax Crisis Coverage (File 014498)

December 13, 2016 Virgin Islands Daily News article reporting on territory businesses facing quadrupled federal unemployment tax rates due to $69 million government debt owed to the Federal Unemployment Insurance Trust Fund.

Summary

The Virgin Islands faces an unemployment insurance debt crisis, with businesses required to pay 2.4 percent in unemployment taxes instead of the typical 0.6 percent to help repay $69.1 million owed to federal programs. Only California and the U.S. Virgin Islands currently have outstanding balances in the Federal Unemployment Insurance Trust Fund. Labor Commissioner Catherine Hendry did not comment, though a prepared statement was promised. The article examines causes rooted in the Great Recession and discusses potential policy solutions including better record-keeping, benefit reductions, and fraud prevention.

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