10 thoughts on “President to Visit C’ville”

  1. I HOPE he talks to the person I offered a job too, that was turned down because there was still “too much VEC to collect…”

    That would be the VEC taxes that have gone up 400% for me in the last 18 months…

    Of course, the last person he came to help get a job lost, and was stuck with a huge bill for security. I HOPE he paid in full.

  2. @ danpri –
    you make it seem like such a rude response to a simple decision – turning down a job because there is “too much VEC to collect.” I’m in a similar situation on the employee side. do I take a job paying same or less than the VEC money I am collecting, which is less than 50% of what I was previously earning? taking that job offer means my income is significantly slashed, means I can no longer accept unemployment and means I no longer have 40 hours a week to search for a job that pays all my bills. your VEC taxes may have gone up 400% in the last 18 months but I’ve paid my part for the previous 22 years I worked. many people make unemployment seem simple – take the job you’re offered. not always an easy decision.

  3. Really, you better run back and check your paystubs. Let me know where you see a VEC decudtion. Yeah, it is the employer that pays VEC taxes, not the employee. So the TAXES I pay, not you or her, come out of my pocket so that person can stay at home on the dole?

    So one is either staying on the dole, when a job could be filled or they are not.

    To me, it is rude to feel such entitlement that one would stay home, on my dime.

  4. Call it what you want but I believe the part labeled “State Tax” on my paystub goes into helping make the VEC $$. and believe me I feel no sense of entitlement being unemployed – only humiliation.

  5. dan,

    The employee and the employer pay into the VEC fund. The employer rate goes up if any employee has a claim against the employer.

  6. The employer alone pays into the VEC fund, just as the employer alone pays FUTA. The tax is levied on the first $8,000 and $7,000 of an employee’s earnings, respectively. The FUTA rate was reduced by 0.2% as of 7/1/11. Since most employees have already earned $7,000 by 6/30/11, this reduction won’t have much impact on most businesses until 2012. The feds use some complicated formula for returning collected FUTA to the states; currently Virginia receives something like 25% of the FUTA taxes levied in Virginia.

    VEC rates are set each year, separately for each business: there is no single rate. The rates can and do vary widely and the increases over the past few years have been huge in certain cases. Part of what determines the increase for any particular business is how many ex-employees are collecting unemployment. So. When someone turns down a job in order to collect benefits, they are indirectly taxing their last employer.

    Check out page 11 on this link:


    In FY2012, $8.9M from the general fund is slated to be added to the VEC for “…an appropriation for a payment owed to the federal government by September 30, 2011, of interest on loans
    used to pay mandatory unemployment compensation benefits.”

    2009 non-general funds = $580,220,374.
    2011 non-general funds = $1,035,380,375.

    The devil is, as usual, in the bureaucratic details.

  7. wait, I thought this was the President Visit post- how did it become a tax seminar in here?

    Any more details on when the visit might happen? I want to avoid that traffic jam. They closed down 29 for awhile last time and I’d just like an idea when that might happen.

    we now rejoin your VEC tax seminar – already in progress…

  8. Businesses make decisions based on what’s best for them regardless of other considerations. Increasingly. Is it any wonder employees and job seekers play the same game? Of course, business – I’m using the term generally, as some socially responsible businesses do occasionally exist – want to make an end-run around this aggravating situation by lobbying to crush any socially minded regulation. The Fed Supreme Court is gleefully lending a helping hand.

    Perhaps the ‘last employer’ should keep in mind the unintended consequences of laying people off or not being a good place for long-term employment.

  9. Well, he’s not coming now. Too bad, I was looking forward to the tie-ups caused by his Canadian built bus and carbon spewing retinue.

    Danpri, if someone turns down a job they applied for, they are not supposed to receive any more unemployment assistance from Virginia.

  10. Too bad, I was looking forward to the tie-ups caused by his Canadian built bus and carbon spewing retinue.

    It’s not a “Canadian built bus.” The bus was built in Tennessee using both American and Canadian parts. According to the Secret Service, it was necessary to use a Canadian shell, because Prevost (the Canadian company) is the only company in North American that manufactures a bulletproof bus shell.

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