Unemployment Proposal Aims to Dramatically Expand Benefits, Increase Taxes on Employers

A proposal put forward by Senators Ron Wyden (D-OR) and Michael Bennet (D-CO) would drastically overhaul the federal-state unemployment insurance (UI) system, significantly increase unemployment insurance (UI) benefits and costs and raise state and federal UI taxes on employers if enacted into law. The Wyden-Bennet Proposal is being released in concert with President Biden’s American Rescue Plan in which $2 billion is being put “toward UI system modernization, equitable access and fraud prevention.” As Iowa currently has one of the nation’s lowest unemployment rates, ABI members are diligently seeking workers to fill thousands of jobs that are available. A proposal that would expand benefits and raise taxes on employers is the wrong approach. ABI will continue to monitor the situation as it develops.