New Jersey Gov. Chris Christie says he’ll let a tax hike on businesses take effect if the federal government doesn’t help the state replenish the unemployment fund. Employers could see an increase of up to $1,000 per employee in their unemployment tax starting July 1 unless the fund is infused with state or federal money. The fund helps pay unemployment benefits. The increase is triggered by a growing shortfall in the Unemployment Insurance Fund. Business taxes are increased by law when the fund’s balance dips below a certain level as measured every March. Christie says the fund will be $1.6 billion in debt by March.
Christie says he’ll ask for help, but there’s no money in the state budget to pump into the fund to stop the increase. AP