Jobs are the best economic development tool - NOT unemployment benefits
A recent article in the Herald-Argus quoted several House Democrats giving a worst-case scenario on the economic impact to LaPorte County based on the new unemployment benefit calculations that go into effect July 1, 2012. This scenario is very faulty because it ties unemployment benefits to economic development. The true fact is that JOB creation is tied to growing Indiana's economy. The deceptive report was created and then presented with the Indiana Department of Workforce Development's (IDWD) header and a note at the bottom saying that the table was produced by IDWD. The economic analysis reflected in the report was not put together by IDWD nor are they supported by IDWD. The numbers were fraudulently portrayed as fact. The report was made to look exactly like a report released by DWD to show the labor area unemployment statistics. To summarize, the report was untrue and created with implausible numbers to reflect an outrageous scenario.
The fact of the matter is that our state's economy should NOT rely on unemployment benefits to thrive. The focus should be on jobs by creating more and better paying jobs for all Hoosiers. I and my Republican colleagues are working this legislative session to create the best economic climate possible to attract new businesses, and to promote Hoosier small businesses and entrepreneurship in Indiana. Indiana has and will continue to lead the nation out of this recession by offering Hoosiers the opportunity and chance to succeed in a time when many other Americans are struggling to do so.
Our plan to repay the Unemployment Insurance Trust Fund debt to the federal government by spreading the repayment over time will allow the economy to be more predictable and stable for business owners. The repayment plan was crafted carefully to spread the obligation between both the employers that pay the unemployment taxes and recipients who receive the benefit. The repayment burden ends up being about ¼ on recipients and ¾ on employers. This plan reduced the impact of the large tax increase on Hoosier employers passed in 2009 and will allow them to use more of their money to hire Hoosier workers. When employers are able to plan their expenses ahead of time they are able to pay their employees a full wage. We want to put more money in Hoosiers' pockets and not increase taxes so that we can stimulate the economy and get families back on track faster.
This 'report' is not only untrue, but intentionally attempts to create fear and misunderstanding for a bill that will provide a more stable environment for all employers and workers in Indiana. Indiana's government will live within its means just as Hoosiers have been doing. With our plans, Indiana's economy and Hoosier families will prosper.
State Rep. Tom Dermody (R-LaPorte)