Today, groups representing thousands of employers across the nation wrote a letter in support of the unemployment insurance reforms Republicans included in H.R. 3630, “The Middle Class Tax Relief and Job Creation Act,” that help the unemployed get back into the workforce, promote state flexibility and avoid tax increases on employers. Currently, H.R. 3630 is pending in a conference committee charged with resolving differences between the House and Senate on this bill to extend the payroll tax holiday, unemployment insurance benefits, Medicare physicians payment fix and other items.
In the letter, the groups wrote: “Employers across the country are experiencing dramatic increases in their tax burden related to unemployment compensation, including state experience rate increases, state solvency taxes, assessments to pay for interest on outstanding loans, increases in federal unemployment taxes, and debt service payments in support of bonds and other financing to pay off large outstanding state debts. This increased financial burden has a deleterious effect on economic recovery by increasing the cost of employment and making it more difficult for employers to add jobs. Extensions in unemployment related provisions should not result in further increases in taxes to be paid by employers.”
In the letter, the groups wrote: “Employers across the country are experiencing dramatic increases in their tax burden related to unemployment compensation, including state experience rate increases, state solvency taxes, assessments to pay for interest on outstanding loans, increases in federal unemployment taxes, and debt service payments in support of bonds and other financing to pay off large outstanding state debts. This increased financial burden has a deleterious effect on economic recovery by increasing the cost of employment and making it more difficult for employers to add jobs. Extensions in unemployment related provisions should not result in further increases in taxes to be paid by employers.”
The full letter can be read here.