Economic development leaders in Oregon have pressed the state to consider a major reform to the state's business tax incentive structure. Their main aim? A complete overhaul of a manufacturing tax credit program, an action undertaken after a renewable energy firm that benefited from the incentive recently closed shop.
Already, employers in a number of states are subject to higher tax rates due to outstanding debt owed to the federal government because of loans taken out to pay unemployment insurance during the recession. Now, businesses in qualifying states face another potential federal unemployment tax hit in addition to the increases called for in the president's recent budget proposal.
Recently, many states, like Wisconsin, have tackled unemployment insurance reform with the intention of limiting jobless benefits payouts. However, Colorado recently bucked the trend of downsizing UI programs after recent legislation that suggests expanding the availability of jobless compensation was passed by a committee and is now up for House consideration.