The 2014 legislative session, which ended Wednesday, Aug. 20, brought some big wins for small business, including legislative that greatly reduces the possibility of higher taxes to support the state’s unemployment fund.
Less than 18 months ago, North Carolina owed the federal government $2.8 billion dollars in funds borrowed to pay unemployment claims to residents who had lost their jobs.
With the passage of House Bill 4, the state’s debt has been reduced to about $500 million.
The bill reduced the maximum amount of unemployment benefits as well as the length of time benefits could be collected.
In addition, hundreds of millions of dollars will be saved by paying the debt back in 2 years rather than the expected 5 years allowing for the state’s unemployment trust fund to be replenished to $1 billion, triggering a reduction in the insurance rates being paid by North Carolina businesses.
NFIB/North Carolina worked closely with the leadership on this legislation at the beginning of the legislative term which will ultimately reduce rates for small business owners when the debt is fully paid, State Director Gregg Thompson said.
