[20050527]RS22069_州失业税和SUTA倾销.pdf

Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS22069Updated May 27, 2005State Unemployment Taxes and SUTA Dumpingname redactedAnalyst in Public FinanceGovernment and Finance Divisionname redactedAnalyst in Applied MicroeconomicsDomestic Social Policy DivisionSummaryThis report provides a summary of the State Unemployment Tax Acts (SUTA)Dumping Prevention Act of 2004, P.L. 108-295. The term “SUTA dumping” refers toa variety of tax planning strategies used by employers to minimize the tax burden offederally mandated state unemployment taxes. The strategies exploit the differences inmethods state employ to determine unemployment tax rates among establishedemployers and the method by which states determine the tax rate of new firms and firmsthat have either created new subsidiaries or have absorbed other firms. SUTA dumpingcreates tax inequities when firms avoid their appropriate state unemployment taxes.Firms that follow state unemployment tax law are burdened with additional taxes as aresult of the tax avoidance by the firms that engage in SUTA dumping. This report willbe updated as legislative activities warrant.