House Republicans Vote to Delay
Tax Increase on Employers
Unemployment Insurance Tax Hike Would Cost Hoosier Jobs
Throughout the short session, House Republicans have called for a one-year delay of the unemployment insurance tax increase on employers, the biggest tax increase on employers in state history. On Thursday, House Republicans offered a alternate plan to Senate Bill 23 that dealt solely with the delay of the tax. Conversely, the House Democrat plan added several other provisions to Senate Bill 23 including language that would chip away at property tax protection.
Unfortunately, the proposal was defeated along a party line vote. The Democrat proposal then passed on a party line vote. Senate Bill 23 is eligible for second reading amendments on Monday.
"This is the single most important jobs initiative available this session," said Republican Leader Brian C. Bosma. "The best way to protect and retain jobs for Hoosiers is by delaying the unemployment insurance tax increase for one year. Employers are still recovering from the national recession and delaying this tax increase is key to helping them keep their employees on the payroll."
Last session, the Indiana General Assembly passed House Bill 1379 which increased unemployment insurance tax premiums on employers. No House Republican supported the measure.
Some key facts about why the unemployment insurance tax delay is needed:
- Over 2 million Hoosier works are employed by a business that will be subjected to one of the largest tax increases on Hoosier employers in history.
- Nearly $300 million in new taxes will be placed on about 80,000 Hoosier businesses ranging anywhere from $9 to $748 per employee.
- Over 72,000 of those employers are small businesses (1-49 employees).