updated: 4/30/2009 8:30:14 AM

[UPDATED] Chamber Wants Governor to Veto Unemployment Trust Fund Bill

InsideINdianaBusiness.com Report

Indiana Chamber President Kevin Brinegar says the Chamber and other business groups contend the bill, which raises unemployment taxes on Hoosier businesses, will lead to future layoffs.

The Indiana Chamber of Commerce says it will immediately begin contacting businesses around the state, urging them to ask Governor Mitch Daniels to veto a bill to fix the state's bankrupt Unemployment Insurance Trust Fund. Chamber President Kevin Brinegar says"the bill that passed last night does not solve the unemployment compensation trust fund problem by a long shot."

Source: Inside INdiana Business

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The Indiana House and Senate passed a $730 million fix for the unemployment trust fund.

The measure includes eligibility rules and higher payroll taxes on employers.

The proposal passed the Senate with just three no votes, but it took a party-line vote to get through the house.

The top tax bracket for employers would nearly double to 10.2 percent, focusing on the companies who lay off the most employees. The bottom tax rate would be reduced.

The eligibility changes include requiring recipients to demonstrate they have applied for new work and denying benefits for employees fired for misconduct.

The Indiana Chamber and Indiana Manufacturers Association maintain the bill will end up resulting in job cuts because of the higher taxes.

Source: Inside INdiana Business & Network Indiana\WIBC