Bay Staters Speak Up Against UI Tax Hike

Massachusetts is currently grappling with a significant financial challenge: a $2.1 billion debt owed to the federal government due to misallocated unemployment insurance (UI) funds during the pandemic. The current solution is to have businesses bear the burden of this debt in the form of increased taxes.

In response to the looming threat of increased costs, the Mass Opportunity Alliance (MOA) launched a public education campaign asking Massachusetts voters to tell their legislator: Businesses shouldn’t pay for the state’s mistake.

Residents spoke up! Notably, small business owners and other constituents have sent over 13,000 letters to Beacon Hill.

MOA’s allied member the National Federation of Independent Business (NFIB) has also launched a campaign to raise awareness of the state’s UI blunder. The group is also urging Massachusetts voters to contact their elected officials and ask them to fix the broken Massachusetts unemployment system instead of passing the bill to small businesses.

What People Are Saying

We asked voters to share why a fix on the state’s broken UI system was important to them. Here’s just a sample of what Bay Staters had to say:

“In today’s economy, it is difficult enough to run an organization, pay your employees a living wage with a benefit package, without having to pay for the mistake of others. The Commonwealth of Massachusetts was derelict in its duties to keep the funds for the unemployment insurance safe and secure…The fault is 100% on the Commonwealth to fix without placing the burden on us as small businesses.” – Clarence K., Westfield 

“Between higher prices for materials and tools that I need to complete my projects, I can’t afford to pay additional taxes or fees.” – Stephen B., Middleboro

“I work at a small independent pharmacy which is already struggling…Most times we lose money on a prescription filled. We definitely can’t afford to pay higher taxes too.” – Lisa D., Halifax

“I have owned a small business in Massachusetts for almost 27 years. I work hard to earn a living and to keep Massachusetts residents employed. During the COVID crisis, I did not take a single hand out…I kept my business running…I retained my employees and hired new employees…I do not think it is fair to pass on the cost of a mistake to small businesses that we had nothing to do with. We already pay high employment taxes and cannot afford additional costs.” – Nancy T., Scituate

“This will affect my cost of living. Making businesses pay will just make them pass the costs along to the consumer and increase product costs. I shouldn’t have to pay for my elected leaders’ mistakes.” – Mark C., Woburn

“Why should taxpayers who already have enough expenses to survive have to continue to shell out? It only figures that if businesses have to pay higher taxes, they’ll pass that onto the consumers who already have problems trying to keep a budget with the high price of gas and food.” – Donna S., Methuen

“Why should taxpayers bail out the Commonwealth for yet another debacle of profligate spending and inadequate controls? Enough is enough.” – David M., Lexington

The Path Forward

As Massachusetts navigates this complex issue, the voices of its residents and business owners should serve as a crucial guide.

The state’s approach to resolving this debt will not only impact its economic landscape and competitiveness, but it will also set a precedent for how state fiscal issues are addressed in the future.