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| For Immediate Release |
Contact: Andy Deloney |
June 24, 2009
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517/377-3931 |
MRA Applauds Defeat of Effort to Increase Unemployment Taxes
This afternoon, the state Senate defeated an effort to take up bills that would increase payroll taxes for every employer in Michigan. The Michigan Restaurant Association (MRA) applauds the Senate for defeating this tax increase.
At issue was an offer contained in the federal American Reinvestment and Recovery Act (“stimulus legislation”) that would allocate a one-time, $138.9 million payment to the state of Michigan if it enacts permanent changes to its unemployment laws by expanding eligibility to some groups of people who are not now eligible and have no expectation of receiving benefits. Two bills have already passed the state House of Representatives that would provide for this expansion. One expands eligibility to persons in state-approved job training programs. Another permits former part-time workers to seek part-time work and be eligible for unemployment benefits.
Passing these bills means creating a permanent expansion of eligibility for benefits, which will create rapidly increased unemployment compensation spending and higher unemployment taxes for all Michigan employers.
The motion to take up the bills was defeated on a party-line vote, with all Republicans voting against and all Democrats voting in favor. The MRA thanks those senators that voted with us for their recognition that hiking taxes on employers is no way to turn this state’s economy around.
The bills passed the state House of Representatives earlier despite strong opposition from the MRA and a united business community. The vote in the House, too, was a party-line vote, with Republicans – except state Rep. Tory Rocca (R-Sterling Heights) voting against and all Democrats voting in favor.
The MRA is strongly opposed to this legislation and has been working in the Senate to defeat it. While the issue is certainly not “dead” as it can be brought up again at any time, we are encouraged by this action.
The Michigan Restaurant Association (MRA) is the recognized leader of Michigan's hospitality industry, providing essential services to the foodservice community. Founded in 1921, the MRA represents more than 4,500 Michigan foodservice establishments. The industry plays an integral role in Michigan's economy, employing more than 423,600 people and creating more than $13.1 billion in annual sales. For more information please call 800-968-9668.
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