01/27/09
With South Carolina set to release its latest unemployment numbers, businesses and lawmakers are contemplating tax hikes as one way to fix a system that needs to borrow hundreds of millions of dollars from the federal government so residents continue to get benefit checks.The options are limited for policymakers, who will have to continue asking Washington for loans until the economy gets better, increase taxes on businesses or make it more difficult for some residents to get benefits.Since last year, the Employment Security Commission has asked for $330 million to keep paying unprecedented jobless claims as the recession batters South Carolina. Payouts to about 104,000 unemployed people cost $20 million in one week earlier this month.The news isn’t expected to improve today, when December’s unemployment rate is made public. The state hit 8.4 percent in November — tying with California for the third-highest in the nation.No matter how bad it gets, what’s clear is South Carolina doesn’t have enough money in its own accounts to continue paying benefits. It’s a dilemma that’s added fuel to a political fight between Gov. Mark Sanford and the heads of the Employment Security Commission, but the broke account has business leaders and a top lawmaker saying that increased taxes to support the fund may be needed.
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