Des Moiones, Iowa (RI) — Governor Kim Reynolds has signed a bill into law that reduces the tax rates businesses pay into the state fund that pays out unemployment benefits.
Reynolds points to Iowa’s population — which ranks 32nd among the states — while Iowa’s Unemployment Trust Fund is the ninth largest in the country.
Reynolds says that nine percent rate needlessly punished Iowa businesses because nearly two BILLION dollars is sitting in the Unemployment Trust Fund today.
Under state law, higher tax rates will be triggered if the Unemployment Trust Fund falls below 900 million dollars. Officials estimate the lower rates Reynolds has approved will save businesses 975 million dollars in taxes over the next five years.
Reynolds held the bill signing ceremony at U.S. Erectors in Pleasant Hill. She says the company will save 85 thousand dollars in unemployment taxes in 2026 as a result of the new law. Brad Churchill, the company’s CEO, says that’s meaningful tax relief.
Democrats say laid-off workers are footing the bill for a corporate tax break since Republican lawmakers reduced the maximum time Iowans may receive unemployment benefits from 26 to 16 weeks. That change was made in 2022.
KIWA Staff Photo
