Latest news with #SenateFile607
Yahoo
a day ago
- Business
- Yahoo
Kim Reynolds talked taxes and unemployment in Pleasant Hill
DES MOINES, Iowa — Iowa Governor Kim Reynolds put a bullseye on cutting taxes during the recent legislative session. On June 5 in Pleasant Hill, she signed off on a law helping business owners. Reynolds autographed the measure while visiting a metal building manufacturer in the Des Moines suburb. The change will reduce the amount of money businesses pay in unemployment insurance taxes. Story continues below Top Story: McCook Lake residents in need of more dirt to rebuild homes Lights & Sirens: Traffic violation scam alarms Siouxlanders; police issue alert Sports: Bishop Heelan girls soccer drops 1A State semifinal match to Davenport Assumption in 1-0 defeat Weather: Get the latest weather forecast here In a released statement, Reynolds said the state's unemployment trust fund has a nearly $2 billion fund balance and is the ninth highest in the country. Iowa ranks 32nd in population. 'Senate File 607 will cut the taxable wage base by half. It lowers the maximum tax rate to 5.4%, which was 9% before this. And it streamlines the system while saving businesses, as you heard, nearly a billion dollars over 5 years,' said Reynolds. Reynolds has until June 14, a little more than a week, to sign or veto bills approved during the session. She is yet to make a decision on new restrictions for carbon pipeline developers. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
2 days ago
- Business
- Yahoo
Gov. Kim Reynolds signs unemployment insurance tax bill into law
Gov. Kim Reynolds, joined by lawmakers, business owners and Iowa Workforce Development staff, signed into law a bill reducing the taxable wage base for Iowa's unemployment insurance system at U.S. Erectors in Pleasant Hill June 5, 2025. (Photo by Robin Opsahl/Iowa Capital Dispatch) Iowa Gov. Kim Reynolds has signed into law a bill cutting the taxable wage base for Iowa's unemployment insurance system, one of her goals from the 2025 legislative session. The governor held a bill signing event Thursday for Senate File 607, at U.S. Erectors in Pleasant Hill, one of the businesses she said the new law is intended to help. The measure, which goes into effect July 1, will cut in half the taxable wage base used in collecting unemployment insurance taxes, from 66.7% to 33.4%. It also modifies employer contribution rates and excludes wages from the unemployment insurance system's definition of 'taxable wages' paid by employers when the employees work in another state in cases where reciprocity applies. 'It's a signature piece of legislation, one of my top priorities this session, and a key part of our ongoing efforts make Iowa's economy stronger, more competitive and built for the future,' Reynolds said. Reynolds said the changes are 'long overdue,' saying Iowa's unemployment insurance taxes have 'needlessly over-collected from our businesses' for years. With $1.95 billion in the Unemployment Compensation Trust Fund, the governor said Iowa had the ninth largest unemployment trust fund in the country despite being 32nd in state population. By lowering the amount employers pay into the fund, Reynolds said businesses are projected to save nearly a billion dollars over the next five years. U.S. Erectors, which hosted the event, is projected to keep $85,000 in the next year due to the change, she said. Brad Churchill, CEO and co-founder of U.S. Erectors, thanked Reynolds for moving the measure forward, saying it 'provides meaningful relief to employers across Iowa, while maintaining a full scope of benefits for employees for their time of need.' 'Early projections and estimates are that the bill would generate the savings of up to $800 million for businesses statewide,' Churchill said. 'For companies like ours, those savings can be reinvested directly into our workforce through hiring, wage increases, purchasing of new equipment and expanding our facilities for growth.' While supporters of the bill said the new law is correcting overpayments into the Unemployment Compensation Trust Fund, Democrats argued the change will mean less money is available to help Iowans when they lose their job, tying it during floor debate on the measure to other changes made to Iowa's unemployment system in recent years. Rep. Daniel Gosa, D-Davenport, said in a statement Thursday the change is providing more money to employers who cut jobs in Iowa. 'While Iowa families struggle and Iowa's economy ranks dead last, Gov. Reynolds and Republican lawmakers are handing out a $1 billion tax break to big corporations, paid for by raiding funds meant for laid-off workers,' Gosa said. 'In 2022, Iowa Republicans slashed unemployment from 26 weeks to 16. Now they're handing out tax breaks to corporations that lay off workers and ship jobs overseas. Iowa workers shouldn't be footing the bill for corporate tax breaks.'
Yahoo
14-05-2025
- Business
- Yahoo
Governor's unemployment insurance tax bill passes Legislature
Iowa lawmakers gave final approval to legislation cutting the taxes employers pay into the state's unemployment insurance fund. (Photo by Getty Images) Both chambers of the Iowa Legislature passed changes to Iowa's unemployment insurance taxes Wednesday, sending Gov. Kim Reynolds' proposal to her for final approval. Senate File 607, brought forward by Reynolds early in the 2025 legislative session, would cut the taxable wage base used to calculate unemployment insurance taxes in half from 66.7% to 33.4%. It includes other changes, like reducing Iowa's unemployment tax tables, and excludes wages paid from employers to employees working in other states from the definition of 'taxable wages' if the other state extends reciprocity to Iowa. The bill passed the Senate 32-16 and the House 59-27. In the House, Rep. David Young, R-Van Meter, said Iowa is in a good position when looking at the amount of money in the state's Unemployment Compensation Trust Fund — $1.95 billion — but said there have been questions 'legitimately' raised about what would happen to the fund in the case of a recession or economic downturn. Though the bill contains decreases to the taxes going to this fund by decreasing the taxable wage base, Young said changes to the tax rate are triggered under current law — and retained in the bill –if the balance of the fund falls below $941 million. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX 'Our state's unemployment rate is 3.4%, and with an unemployment insurance trust fund at almost $2 billion, the sound argument is being made that we've been over-collecting — especially compared to other states,' Young said. 'The proposal before us saves employers and businesses approximately $975 million over five years, injecting that back into the private sector.' Democrats proposed multiple amendments in both chambers, including measures to reverse Iowa's cuts to unemployment in recent years, each of which failed. One Senate amendment would have waived work search requirements for people with seasonal employment. In the Senate, lawmakers opposing the legislation said it does not help workers but benefits the companies that lay them off, causing residents to find work in another state rather than try to figure out a complicated, burdensome system that won't provide aid for as long as they need. 'Our unemployment system is rigged for the employers, particularly with this bill,' Sen. Molly Donahue, D-Marion, said. 'It is the workers who hold those businesses up, and we need to do better by those workers, not give more breaks to the employers who are laying them off.' Sen. Bill Dotzler, D-Waterloo, said he was 'ashamed' of Senate Republicans for how they're treating workers with the legislation by not allowing more time to take advantage of benefits and helping businesses more than employees. Providing unemployment insurance to Iowans doesn't mean they're just being handed a check, Dotzler said, it means they have the time to better themselves for employment while they seek it and won't have to worry as much about finances in the process. One of the House Democrats' amendments proposed requiring savings for employers through the bill be used to increase employee salaries or benefits — a suggestion, not requirement, under the current legislation. Democrats argued during debate on the bill in the House the unemployment funds need to be available for Iowans in need, and that businesses should not necessarily be trusted to use tax savings on better compensation for workers. Rep. Lindsay James, D-Dubuque, said 'the reason the fund is full in the first place is because this body, the majority party, voted to strip workers' benefits.' 'The money in this fund was never meant to go back to the big corporations,' James said. 'It was meant to go to workers, and that's where it should be going. … This isn't policy. It is corporate theft.' Young said most of the claims made by Democrats were factually inaccurate, saying the measure does not provide an 'corporate income tax break,' and does not cut any unemployment benefits. Sen. Adrian Dickey, R-Packwood, called concerns brought up by Democrats 'old, tired talking points,' and said the problems they worried about with previous unemployment legislation have not come to fruition. Iowa's population grew between 2023-2024, he said, countering statements that Iowa is losing workers in favor of going to other states with better pay, benefits and unemployment programs. For the lawmakers who said the process to apply for unemployment is too complicated, harming those who need aid, Dickey said they'd be happy to know that Iowa Workforce Development will launch updated websites and materials this summer. Dickey acknowledged there are flaws in the current system, including the state's unemployment fund, and said the Legislature should take time next year to take a hard look at how unemployment works in the state. However, Iowa is third in the nation for average weekly rate of benefits at just over nine weeks. He asked why Iowa would want to be like its neighbors, which have longer averages. 'The Republican Party has been the party to stand up for Iowa workers,' Dickey said. 'We are the party that wants our workers to aspire more than desiring an unemployment check.' Reynolds released a statement celebrating both chambers passing the measure. 'Passing this bill means nearly $1 billion in savings over five years for Iowa businesses of all sizes,' the governor said in a statement. 'Thank you to our legislators and key stakeholders for their support to help attract new business to Iowa and place existing businesses on a level playing field with our neighboring states.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
