California Business Owners Blindsided by Surprise Payroll Taxes After Newsom, Democrat Legislators Failed to Repay Federal Government Loan on Time

 A Great example of the Dumbasses on the Left.  They are and always have been Economic Idiots!

Newsome must be at the head of the class for Economic Stupidity

Meanwhile in the Democrat hellhole of California…

California business owners were blindsided by surprise payroll taxes after Governor Gavin Newsom (D) and Democrat legislators failed to repay a $20 billion federal loan.

The state’s Democrats failed to budget properly and repay a $20 billion federal Covid loan back on time so the costs got passed down to unsuspecting business owners who are already taxed to death.

This is after Newsom forced small businesses to close down (many went bankrupt) during the Covid pandemic.

Businesses were hit with an extra $21 per employee in payroll taxes because California’s Democrats didn’t pay the federal loan back.

In 2026, the amount will increase to $42 per employee, in 2027 it will increase to $63 and it will continue to increase an extra $21 per employee until the loan is paid in full.

KCRA reported:

Businesses across California are now paying more on their payroll taxes to the federal government because of spending decisions the state’s legislature and governor made within the last couple of years.

The state failed to repay on time its $20 billion loan from the federal government that helped with California’s unemployment costs during the pandemic. The state forced businesses to close during COVID-19, leaving many jobless and in need of unemployment pay. State officials have said California ended up paying more than $200 billion in benefits, more than $32 billion of which was the subject of fraud.

California is one of two states (the other New York), that did not pay back the loan with the stimulus money it had received from the federal government. California received $27 billion in stimulus, but state leaders opted to keep it and spend it on other items at a time when they boasted about the state’s nearly $100 billion budget surplus. In 2023, the state faced a budget deficit in the tens of billions of dollars and then was met with the same hurdle in 2024.

Since the state did not pay back the debt within two years, federal law requires the state’s employers to step in and pay up. As of now, each employer, regardless of the number of employees they have and whether they are part or full-time, will pay an extra $21 dollars per employee on their payroll taxes. In 2026, the extra amount will increase to $42, in 2027 to $63, and increase another $21 per employee every year until it’s paid off.

Recall that earlier this year California’s Democrat state senators overwhelmingly voted to pass a bill that would give illegal aliens $150,000 interest-free home mortgage loans.

However, after the California Senate advanced the bill allowing illegal aliens to apply for the state’s first-time homebuyer’s program, the California Department of Finance confirmed the program has no money to give.

The mortgage loan program for illegal aliens wasn’t given any new money after the state budget was agreed to in June.

Governor Newsom was forced to veto the bill because of a lack of funds.

No matter how bad things are in California financially, the state’s Democrats still tried to give money to illegal aliens instead of balancing the budget. And now, because of deliberate mismanagement of the state’s budget, California’s business owners are on the hook for an unpaid federal loan.

https://www.thegatewaypundit.com/2024/12/california-business-owners-blindsided-surprise-payroll-taxes-after/