Constituent-led tax and social insurance reform

We are focused on creating a proportional tax structure rather regressive, making sure individuals who pay into unemployment insurance have the right to receive benefits, and sustaining purchase power of claimants through reformulating the benefit calculations.

Currently, the tax structure is based on the employees’ wages and paid by the employer. The taxable wage base is set at a ceiling of $15,000. The rate is experience base through the reserve ratio method of Experience Rating. Benefit payment are 40% of the claimants wages after taxes capped at $855.

The tax ceiling of $15,000 creates a extreme regressive tax. The reserve ratio Experience Rating hurts vulnerable businesses and disincentives hiring and wage growth. A flat benefit rate calculation does not preserve purchase power of low wage earners.

Each state is responsible to collect and distribute its own UI program. Massachusetts and most states in the Union have not collected enough revenue to comply with Department of Labor Standards for decades.