Unemployment Insurance Tax Delay Vote Today

by Joni Howell, VP of Government Affairs

The Indiana State Senate Tax and Fiscal Committee is scheduled to vote on SB 23 today, a bill that is being fast-tracked before session even officially begins. The bill would delay the unemployment insurance tax increase under last year's legislation (HB 1379).

The Greater Fort Wayne Chamber of Commerce has taken the following position on this pressing issue:

Unemployment Compensation: In 2009 the legislature made changes to Indiana's unemployment insurance system that were intended to replenish the depleted Unemployment Trust Fund. The objective was commendable, but the changes provide for a major tax increase to the business community at a difficult time.

• UI Increase Delay: While the Chamber doesn't oppose delaying increases passed in 2009, we urge the General Assembly to proceed with caution, and have a "Plan B" should the federal government not take action.
• The Chamber also encourages the legislature to have a steady hand in the future, not raising and lowering benefits and rates depending on the environment, but to maintain an actuarially funded plan, matching revenues with benefits.
• The Chamber supports continued legislative efforts to "crack-down" on the number of abuses within the State's Worker's and Unemployment Compensation systems. Area businesses feel the brunt of fraudulent worker's and unemployment compensation claims from both a monetary and a loss of work and productivity standpoint. Therefore, we continue to urge action to assist businesses in addressing the abuses in these claims.

The hearing is scheduled for 1 p.m. today in room 431 of the Statehouse and can be viewed online here.

To hear more about Chamber positions and priorities on issues for this legislative session, join us for the annual Legislative Preview tomorrow! You will hear from the Fort Wayne Chamber, the Northeast Indiana Chamber Coalition (NEICC), representatives from the State Chamber, and our local legislative delegation. Price is only $10 for Fort Wayne Chamber and NEICC members, and $20 for non-members. For more details and to RSVP visit our Web site.