The Indiana Senate Tax and Fiscal Committee heard House Bill 1450 on Thursday, which would change how unemployment benefits are calculated. The bill would reduce the weekly average from $238 to $212 while the average benefits in the U.S. are $295 per week. To repay the state’s $2.6 billion loan from the federal government, the bill would collect an additional surcharge from businesses. Additionally, to bring the fund in balance, it would raise the taxes paid by businesses but not as much as they would have been raised under the law that went into effect January first of this year.
State Senator Karen Tallian says that dropping the weekly benefits would take too much spent money out of the state’s economy. As a co-sponsor of the legislation, Sen. Tallian will be closely involved in negotiating changes to this legislation and says she plans to offer various alternatives to the bill as it moves through the process.
SEN. TALLIAN: “Right now we could be taking $400 Million out of the economy…” (Length: 02:30)
House Bill 1450 was approved in the committee on party lines by a vote of 8-4. It is now eligible for further consideration by the full Senate.