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Kyle Pomerleau: Removing experience rating would increase UI program use and require higher net labor taxes

Kyle Pomerleau: Removing experience rating would increase UI program use and require higher net labor taxes
Removing experience rating raises labor taxes

Kyle Pomerleau states that eliminating experience rating would lead to increased use of the unemployment insurance (UI) program.

He adds that this change would necessitate higher net taxes on labor to support the increased demand.

Pomerleau has previously argued that raising taxes in one area may result in additional tax hikes elsewhere, limiting any net affordability benefit. He has also written that increased government spending can reduce private sector output by reallocating economic resources. These positions provide additional context to his views on unemployment insurance policy.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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