Legislature’s Unemployment Fund ‘Fix’ to Put Even More Hoosiers Out of Work


The following is a statement from Indiana Chamber President Kevin Brinegar on House Enrolled Act 1379 — the unemployment insurance trust fund legislation just passed by the Indiana General Assembly. Brinegar explains:

“We’re happy to see that Indiana company owners and management representatives are appropriately contacting the Statehouse and urging Gov. Daniels not to sign on to one of the largest tax increases on business in the state’s history. One of our members, owner of a South Bend company (with six employees) celebrating its 50th anniversary this year, said he will personally come to Indianapolis and deliver the keys to his business to all those involved if this legislation becomes law.

“A ‘solution’ that raises business taxes more than $700 million over the next two years at a time when many companies and their employees are already struggling is no solution at all. Legislators are already coming back to work to pass a new state budget (in a special session). They should also be required to enact an unemployment insurance trust fund plan that balances revenue increases with expense reductions and does not threaten additional job losses as a result of these totally unreasonable tax increases.”

You can take action and let Gov. Daniels know how this will impact your company by sending a letter though the Indiana Prosperity Project grassroots web site, calling the governor’s office at (317) 232-4567 or visiting the Statehouse at 200 W. Washington Street in downtown Indianapolis.

0 thoughts on “Legislature’s Unemployment Fund ‘Fix’ to Put Even More Hoosiers Out of Work

  1. How about the Chamber telling the business in South Bend the truth? If he doesn’t have a significant history of layoffs, he’ll probably pay less. Tell him to keep the keys.

  2. For some very small companies with few past claims, there will be a minimal decrease. Good for them; bad for everyone else paying $700 million more the next two years. As this business owner told me, however, it’s the mentality that “fixing” the problem by just taxing businesses that has him ready to call it quits.

  3. UI premiums have always been paid by business, right or wrong. And for too long, small business has carried the freight for big business while the Chamber stood idly by and did absolutely nothing. The system has been losing money since 2001. When did the Chamber propose a reform plan? Never. Ever.

  4. A few facts for you: Of the Chamber’s nearly 5,000 members across the state, the vast majority are small businesses. More than two-thirds have fewer than 100 employees, and many are in the 20 and fewer category.

    The Indiana Chamber has been preaching on deaf ears about the turnaround for the worse since the fund had a $1.6 billion surplus early this decade. The fund was in trouble well before the economic downturn. And Chamber expert George Raymond was one of the first to offer a plan. He provided numbers to legislators that detailed what could be accomplished with tighter reforms on who was eligible for unemployment, getting rid of the abuses, at least exploring a small co-pay for working employees and more. The Chamber was a leader throughout the process, but legislative negotiators simply decided to stick it to the business community — big and small. The battle, however, is not over.

  5. Legislators and voters need to remember: If you excessively tax business, the cost will be passed down in the form of higher prices for consumers and possibly layoffs for employees. It is truly amazing the number of people in power who fail to recognize this reality.

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