So the states that have totally screwed up their own finances (California, Illinois, New York, Michigan, Nevada...) get a bailout from the Federal government, i.e. get a bailout from ALL the states.
Obama also would suspend automatic hikes in the federal unemployment tax scheduled to hit employers in nearly half of the states by the end of next year.
And if those states take the bait....
But starting in 2014, Obama would target companies for sharply higher payroll taxes to help states replenish their depleted unemployment funds and repay their debts to Washington.
Here's what I think is going on. Obviously Obama knows and understands the Constitution and it's intent vis-a-vis limited Federal powers. What is also obvious is that he is completely ignoring the Constitution and the spirit of the founders and moving to impose a system where the states are irrelevant and all is controlled at the Federal level.
The states got themselves into this mess of not having enough money in their unemployment funds. It is the responsibility of the states to fix the problem.