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Indiana Senate OKs bill to delay jobless-tax hikes

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The Republican-controlled state Senate has approved a bill delaying unemployment-tax increases on businesses for a year, but the legislation may face hurdles in the Democrat-led House.

The Senate voted 33-17 Tuesday to delay 2010 unemployment-tax increases until 2011 in an effort to help employers retain workers during the difficult economy. Senate Democrats opposed the proposal, saying it could prevent out-of-work employees from collecting benefits while disputed claims were resolved.

The bill now moves to the House. Some House Democrats say the unemployment-tax increase should not be delayed because it's needed to start replenishing the unemployment insurance fund, which owes $1.5 billion to the federal government.

 

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