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State House passes unemployment system reforms

A Missouri Senate committee has passed a tax reform bill that would – cut Missouri income tax, increase the fuel tax, collect sales tax on online purchases and cap low-income housing credits.

This is just the first step in a long process to address taxes, roads and balancing our State budget. I could give you facts and figures of where these issues are but I know they will change. I wanted you to know that discussions and debates are underway. As always, feel free to give me a call or an email with your thoughts and I will keep you up to date on the latest information.

House Passes Important Reforms for State Unemployment System (HB 1409)

The Missouri House gave final approval to a bill meant to protect the state’s unemployment system from insolvency in the event there is another economic downturn. The bill is necessary because Missouri is the only state that has been forced to borrow money from the federal government to pay for unemployment benefits during each of the last five economic downturns. Businesses are negatively impacted because borrowing federal dollars causes employers to lose a portion of a federal tax credit they normally receive.

This legislation is designed to make sure the state has enough money in its unemployment trust fund so that businesses don’t have to pay a penalty. The bill would also tie unemployment benefits to the average unemployment rate so that more benefits are available when unemployment is high. If the state were in a position of high unemployment (9 percent or higher), benefits would be available for 20 weeks. In periods of low unemployment (lower than 6 percent), benefits would be available for 13 weeks. The legislation now moves to the Senate for consideration.

Representative Rick Francis, 145th District Representative

Representative Rick Francis, 145th District Representative

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