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submitted 1 year ago by NightOwl@lemm.ee to c/worldnews@lemmy.ml
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[-] Chetzemoka@startrek.website 87 points 1 year ago

"he said he vetoed this bill because the fund the state uses to pay unemployment benefits will be nearly $20 billion in debt by the end of the year.

The fund the state uses to pay unemployment benefits is already more than $18 billion in debt. That’s because the fund ran out of money and had to borrow from the federal government during the pandemic, when Newsom ordered most businesses to close and caused a massive spike in unemployment. The fund was also beset by massive amounts of fraud that cost the state billions of dollars."

The reasoning and background, if anyone is curious

[-] Corkyskog@sh.itjust.works 11 points 1 year ago

I want to know more about the fraud. At what level is/was the fraud happening?

[-] HorseWithNoName@lemm.ee 12 points 1 year ago

Also the "Newsom ordered most businesses to close." I guess I thought it was a pandemic that had ordered most businesses to close?

[-] Cheers@sh.itjust.works 7 points 1 year ago

PPP was notoriously fraudulent. Big corps we're taking PPP loans

[-] cyborganism@lemmy.ca 59 points 1 year ago

I thought the whole point of paying you union dues was that when a strike happens, the union covers a portion of your salary like unemployment.

[-] Alto@kbin.social 41 points 1 year ago

It's not an unlimited fund, which is why the UAW strike isn't at every single plant for example. Policies like this would greatly strengthen unions by allowing much longer and more widespread strikes.

[-] Maeve@kbin.social 8 points 1 year ago

Which is where Newsome’s line is.

That's what Teamsters does. No idea what's going on here.

[-] zephyreks@lemmy.ml 47 points 1 year ago

The fund ran out of money. What a fucking mess. How can a state simultaneously have the richest companies in the world and not be able to fund basic social support systems?

[-] OprahsedCreature@lemmy.ml 2 points 1 year ago

But it's the good state

[-] Haus@kbin.social 25 points 1 year ago

If only workers paid into the unemployment fund every paycheck, then there'd be no argument for keeping their money from them. Oh, wait... we do.

[-] Letstakealook@lemm.ee 11 points 1 year ago

Unemployment is funded by a tax on employers, not employees.

[-] explodicle@local106.com 6 points 1 year ago

That's not how tax incidence works. A tax is applied to the transaction, and its burden depends on who has more bargaining power, not on who writes the check.

[-] Letstakealook@lemm.ee 2 points 1 year ago

It's called FUTA. Look it up. Also, there's likely a state equivalent wherever you reside.

[-] nogooduser@lemmy.world 5 points 1 year ago

I think that the argument is that if an employer can afford to pay a worker $30,000 per year and the unemployment tax is $3,000 per year then the employee gets $27,000 per year. So the employee effectively paid that tax, not the employer, even though the employer is the one who sent the money and the employer is the one who is liable for the money.

They just pass the burden onto the employee. They have to because that’s just how it works. Just like the customers pay for a restaurant’s rent in the form of an increase in prices to cover the cost.

[-] explodicle@local106.com 3 points 1 year ago

There is no act that changes how tax incidence works.

[-] Heratiki@lemmy.ml 4 points 1 year ago

This is 100% correct. Sadly it’s not as transparent as it should be and quite a lot of corporations have ways of getting around it. Not to mention during COVID there was a lot of taking from the fund but nearly no returning.

[-] SaltySalamander@kbin.social 5 points 1 year ago

No, you don't, lol. Your employer does.

[-] DavidDoesLemmy@aussie.zone 24 points 1 year ago

How is this world news? Doesn't America have enough news communities?

[-] JGrffn@lemmy.ml 4 points 1 year ago* (last edited 1 year ago)

Murica is the world, duh

[-] HububBub@kbin.social 21 points 1 year ago

I'm rabidly pro-union but I'm OK with this. The union should provide.

[-] Blake@feddit.uk 15 points 1 year ago

Employers should be forced to pay striking workers anyways. Fuck em. Burn the whole system to the ground, it’s exploitative and abusive and it has extracted untold wealth from the working class for centuries.

[-] nooneescapesthelaw@lemmy.ml 1 points 1 year ago

Thats the third most idiotic thing ive ever heard

[-] Blake@feddit.uk 1 points 1 year ago

Are you a millionaire? If not, why are you defending people who are? They’re actively exploiting you, making big bucks off of your hard work, and you’re calling me an idiot?

[-] WarmRegards@sh.itjust.works 3 points 1 year ago

"Rabbidly pro-union" and "as left as they come", no doubt lol.

[-] autotldr@lemmings.world 10 points 1 year ago

This is the best summary I could come up with:


Gavin Newsom vetoing a bill Saturday that had been inspired by high-profile work stoppages in Hollywood and the hotel industry.

That’s because the fund ran out of money and had to borrow from the federal government during the pandemic, when Newsom ordered most businesses to close and caused a massive spike in unemployment.

Labor unions had argued that the amount of workers on strike for more than two weeks is so small it would not have had a significant impact on the state’s unemployment trust fund.

Of the 56 strikes in California over the past decade, only two lasted longer than two weeks, according to Democratic state Sen. Anthony Portantino, the author of the bill.

“This veto tips the scales further in favor of corporations and CEOs and punishes workers who exercise their fundamental right to strike,” said Lorena Gonzalez Fletcher, executive secretary-treasurer of the California Labor Federation.

The legislation was an attempt by Democratic state lawmakers to support Southern California hotel workers and Hollywood actors and writers who have been on strike for much of this year.


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this post was submitted on 01 Oct 2023
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