An Iowa legislator provides his stance on a bill that would potentially benefit the unemployment tax rate.

Iowa Governor Kim Reynolds proposed Senate File 504 that would cut approximately $1 billion in unemployment taxes for businesses. Iowa District 28 House Representative David Young believes that the bill needs to be scrutinized because he points out that there is $2 billion in the state’s unemployment trust fund, which is the ninth highest in the United States. 

He mentions that the bill would not affect those individuals with their pensions or benefits they may have with their employers, but rather the administrators who use savings from the trust fund to pay for new employees salaries as well as employment benefits. Young shares the positives that can come from the bill.

“In doing that, I think helps our employers and employees because it allows them to reinvest into their employees, and I think that’s always a good thing to reward employers and employees in that sense. And so I think it’s good for the economy, it’s good for workers, it protects those from being unemployed as well by giving them some extra salary.”

Young emphasizes that the House is going to monitor the Iowa unemployment rate and if it hits a low mark, then it will allow them to refuel the trust fund if necessary. The bill is now eligible for vote by the full Senate.