Out-of-touch Iowa lawmakers propose harmful changes to unemployment

For tens of thousands of Iowans who lost jobs during the pandemic, state unemployment benefits were a critical financial lifeline. Now, remarkably, Republicans who run the Legislature want to shorten the rope.

House Study Bill 203 would change the formula for determining unemployment benefits, reducing weekly payments for many. Iowans would have to wait a week before collecting benefits and an extra 13 weeks of unemployment benefits in the event of a plant closing would disappear. Cutting benefits after plant closure would be particularly painful for workers in rural communities where employment opportunities are more limited.

The bill would also change the definition of “suitable” jobs, requiring Iowans receiving benefits to take jobs that pay significantly less than the jobs they lost.

Republicans say they’re concerned about the state’s unemployment trust fund, even though the fund is solvent, holding nearly $1 billion. But taxes paid into the fund by businesses are based on the size of the fund, so a larger fund means lower taxes for companies.

Read more: https://www.thegazette.com/subject/opinion/staff-editorial/out-of-touch-iowa-lawmakers-propose-harmful-changes-to-unemployment-20210305
(Cedar Rapids Gazette)