Photo: DNY59 / E+ / Getty Images
(Des Moines, IA) -- A bill that would cut the amount businesses pay into the state's unemployment insurance fund is crossing the legislative finish line. Opponents of the bill think it will not help workers and may drive them out of the state.
"We shouldn't be giving a billion to employers; this is insurance for Iowa workers who will need it, and who we need to stay in this state," said Democratic Senate Minority Leader Janice Weiner.
Senate File 607 would create a $1.2 billion tax cut for Iowa businesses by reducing the amount they are required to pay in unemployment taxes. The bill will also lower the unemployment tax rate from 7 percent to 5.4 percent.
Supporters of the bill believe that the state can afford the cuts.
"The fund is full, it absolutely is more than full and that's the problem, and all projections show that if we have another COVID-type scenario again, our funding is at about $600 to $700 million in funds, but we are at $2 billion," said Republican State Senator Adrian Dickey.
SF607 passed the Senate 32-16 and the House 60-27. The bill now heads to the desk of Governor Kim Reynolds, who initially proposed the legislation.