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This reports is from Florida, but employers all over the country can expect the same as the "domino effects" of the uncontrolled spending and self-serving fiscal policies of the federal government cascade down upon the shoulders of state governments:

"...PASCO COUNTY (Bay News 9) -- Owning a small business can be difficult and starting soon local entrepreneurs will be dishing out a lot more cash to the government.

The annual fee employers pay to fund unemployment benefits is about to go up drastically.

The fee is jumping from $8.40 per employee to $100.30.

"That'll have a huge burden on the small business man and woman -- any business in the state of Florida -- who are struggling right now," said state Sen. Mike Fasano.

The state is out of unemployment money according to the Florida Department of Revenue. It's trying to recoup lost dollars that were given to people needing extended unemployment pay.

"The state of Florida has to guarantee, and we do guarantee, anyone who loses their job through no fault of their own will get 26 weeks of unemployment compensation," Fasano said.

"Salaries don't go up, but everything else goes up," Santangelo said. "If taxes go up, I will have to eliminate some of my staff."

The Florida Department of Revenue is expected to announce the increase on Dec. 1, and the increase should go into effect at the first of the year.

According to the Agency for Workforce Innovation, Florida started borrowing unemployment money from the feds back in August.

So far that loan is more than $550 million..."

It doesn't take a financial genius to figure out that this situation will escalate into a vicious cycle as employers are forced to lay off even more employees who, in turn, will require even more unemployment benefits. This will force more borrowing and higher unemployment contribution rates.

For those optimists who claim that economic recovery is just around the corner, I'd appreciate hearing from them with "how, when, and why" this recovery is going to take place.

I don't see it - and I'm not alone.

- Ed Smith, Publisher
The EHS Letter Manual