Unemployment Fund Fix Headed To Governor's Desk

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(STATEHOUSE) - A $730 million fix for the unemployment trust fund has passed the General Assembly and is headed for Governor Daniels’ desk.

The deal is evenly split between tightened eligibility rules and higher payroll taxes on employers. The top tax bracket would nearly double to 102%.

Senate Tax and Fiscal Policy Chairman Brandt Hershman (R-Wheatfield) says that bracket is for the companies who lay off the most workers, thus putting the greatest strain on the fund. And he says the eligibility changes, including forcing jobless Hoosiers to show they've applied for work and denying benefits for employees fired for misconduct, would offset some of the increase.

The bottom tax rate, for companies who rarely have layoffs, would drop.
The Senate approved the deal with just three "no" votes, but it passed the House on a party-line vote.

Republicans there join the Indiana Chamber and Indiana Manufacturers Association in predicting the bill will cost jobs.

In addition to protesting the tax hikes, House Republicans complain the focus since last summer has been on a "balanced" solution that would incorporate not only higher taxes and program reforms, but reduced benefits.

House Democrats declared they wouldn't accept benefit cuts, and unions launched an ad campaign against the idea, culminating in a massive statehouse rally on Monday.

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