Federal Tax Hike Hits Santee Businesses After Sacramento Rejection
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A California Senate committee this week rejected Senate Joint Resolution 15, sponsored by Senator Brian Jones, whose district includes Santee, which would have shielded employers from a climbing federal unemployment insurance tax. The mechanism: California carries a $20 billion UI debt from the COVID-era unemployment surge, and because of that debt, the federal FUTA tax rate is escalating toward 5.2 percent — compared with the standard 0.6 percent rate paid by employers in states without UI debt. Senator Jones characterized the increase as a 250 percent tax hike on small businesses.
In concrete terms, a small restaurant or retail shop in Santee currently paying approximately $42 per employee per year in federal unemployment tax could face more than $364 per employee once the rate fully escalates. For a business with 20 employees, that translates to more than $7,000 in additional annual tax burden. East County's business base skews heavily toward food service, retail, and small contractors — sectors where thin margins make per-employee tax increases acutely painful. The committee's rejection of SJR 15 eliminates a potential state-level cushion without changing the underlying federal trajectory.
On a lighter note, two community events are scheduled in Santee Thursday. The free Summer Concert Series continues at Town Center Community Park East — 550 Park Center Drive — from 6:30 to 8:00 p.m., with The Cheez Whiz performing 80s music. With the YMCA footbridge closed due to construction and YMCA parking limited, organizers are strongly encouraging carpools, bikes, or walking; overflow parking is available at Santana High School on Magnolia Avenue. Separately, the Santee Teen Center at Big Rock Park on Arlette Street is hosting a community mosaic tile-painting event from 2:00 to 3:00 p.m. — no experience required — with the finished tiles to be permanently installed at Mast Park as part of the city's America 250 commemoration.