WHAT RESULT SHOULD WE EXPECT WHEN WE RAISE THE COST OF EMPLOYMENT?:

Payroll taxes increase for many employers across USA (Olga Pierce, 1/20/10, ProPublica)

Last year was the worst Don Miller had seen in more than 20 years of running a graphic printing business here.

Business slumped 15%, and he had to lay off two of the three workers who helped him print stickers and signs for Navy ships.

Miller hopes to bring them back, but hiring will be more expensive for all Virginia business owners this year. The recession has emptied Virginia's unemployment insurance trust fund, and the state is making up for it by raising taxes on employers and cutting jobless benefits for seniors.

In 2009, the average business owner paid $95 per employee. This year, the tax will be $171, according to estimates by the state workforce agency. "It's another added expense to hiring somebody," Miller says.

Meanwhile, Democrats are keeping business guessing about the cost of health care and carbon and immigration compliance.

Posted by Orrin Judd at January 20, 2010 6:35 AM