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What arguments could be made for raising the upper limits of the SUTA tax rate? For...

What arguments could be made for raising the upper limits of the SUTA tax rate? For keeping it as it is?

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Raising the upper limit for SUTA tax rates would help in providing more funds to government sponsored programs such as unemployment insurance program. Additionally the SUTA taxes credit can be taken against FUTA taxes thus raising SUTA tax rates would result in more tax accumulation.

Due to the current economic slowdown, many government-sponsored programs,including the unemployment insurance programs are fund constrained. The gap betweenthe benefits offered to employees and funds sourced from the employers is wideningconsistently. So to pump more funds into the programs, the SUTA tax rate needs to beraised.

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