(Radio Iowa) – A bill that’s cleared an Iowa Senate subcommittee would cut taxes that businesses pay to cover unemployment benefits when people get laid off from their jobs.
Governor Reynolds, who made the same proposal last year, is asking lawmakers to lower the top unemployment tax rate and reduce the taxable wage base by half. The same bill stalled last year over concerns that the state might have to raise business taxes if there’s a recession and Iowa’s unemployment rate soars.
Governor Reynolds says Iowa’s Unemployment Trust Fund has too much money in it and she wants to provide more tax relief.