WASHINGTON STATE

Washington State House Democrats

HOUSE DEMOCRATS

House gives businesses a break and workers a bump

OLYMPIA—With an unprecedented unanimous vote, the House of Representatives approved legislation today to provide timely tax relief for businesses and much needed help for jobless workers.

“With an Unemployment Insurance Trust Fund of $2.5 billion, it became very clear that we needed to do something that benefits the businesses that have paid into it, and the workers who are unemployed,” said Rep. Mike Sells (D-Everett), who Chairs the Labor and Workforce Development Committee and sponsored HB 1091. “We’re One Washington, we’re working together and we’re going to do what we can in this House to move this economy forward.”

After extensive negotiations with business and labor groups, the measure passed will reduce unemployment tax rates by $300 million for 90% of employers. This will result in more than half of Washington businesses paying less in 2011 than they did in 2010.

The bill also brings relief to many Washington families that are suffering with persistent unemployment:

  • For those struggling to find work, the bill makes training programs more accessible, allowing more workers to learn new skills and build better resumes for their job search in high-demand fields.
  • With some adjustment to the formula for calculating claims, Washington’s unemployed workers will qualify for the extended benefits passed by the majority Democrats in Congress during the lame-duck session in December.
  • Workers who are laid off for the rest of 2011 will receive a $25 bump in their weekly benefits.

“Members of both sides of the aisle worked hard together for the past couple of weeks to make a better plan. We took a good idea that started out as a temporary tax decrease for businesses and a small increase for workers and we made it better,” said Rep. Larry Springer (D-Kirkland). “We worked together and recognized that there’s not an employers’ Washington and there’s not a workers’ Washington, there’s just One Washington. We decrease taxes, we increase benefits and we come out with a win.”

“Every $1.00 paid in unemployment benefits returns $1.64 to the local community,” said Sells. “So this will strengthen local economies and increase activity for businesses in every community in the state.”