Des Moines, Iowa — A bill to reduce the taxes Iowa businesses pay INTO the state fund that pays OUT unemployment benefits is advancing in the House, but Republican Representative Dave Deyoe of Nevada says they’re waiting on a detailed analysis of the bill’s impact.
Governor Kim Reynolds proposed this tax cut in January. Deyoe says lawmakers want a Legislative Service Agency analysis so they can be assured that when unemployment rises during a recession, business taxes won’t have to be raised to keep the Unemployment Trust Fund solvent. Nick Lanning is a lobbyist for the trade union that represents electrical workers. He says with recent John Deere layoffs and the closure of the Tyson plant in Perry, now is not the time to make dramatic changes in the state’s Unemployment Trust Fund.
Iowa Association of Business and Industry lobbyist JD Davis says the association backs the bill AND the drive to get more information about its impact.
The bill cleared a House subcommittee Thursday morning and will be considered by the House Ways and Means Committee next week.
