South By North Strategies, Ltd.

A policy brief from the N.C. Budget & Tax Center explains how shortsighted tax policy choices set the stage for the solvency problems afflicting the state’s unemployment insurance system.

The current situation is one that has taken more than a decade for North Carolina to get in and will require time to resolve. But state leaders need to address it, as the unemployment insurance system plays a critical role in smoothing the ups and downs of the business cycle and maintaining the spending that supports economic recovery. Policymakers must put together a solvency plan that rectifies the tax changes made in the 1990s and ensures that all employers are contributing to this critical program that supports families, business and communities in tough times.