House Rejects Destructive Unemployment Insurance Tax, Embraces Important PPP Forgiveness
The Massachusetts House of Representatives passed legislation to avoid a 60% unemployment insurance tax increase on employers and prevent forgiven PPP loans from facing state taxes. The National Federation of Independent Business (NFIB), a small business advocacy association with thousands of members in Massachusetts, applauded that vote. Here’s reaction from NFIB’s Senior State Director, Christopher Carlozzi:
“Today’s vote by lawmakers was vital to preventing a massive unemployment insurance tax hike on employers. It’s especially important since the state is reliant upon small businesses to grow jobs and lead economic recovery. Small businesses, forced to reduce workers due to state-mandated closures and restrictions, should not be saddled with debilitating UI taxes.
Small businesses are also appreciative that forgiven Paycheck Protection Program loans will not be subjected to state taxes. Every last cent of funding will go to ensuring small business survival. These loans were intended to keep business afloat and workers employed during the pandemic, and never intended to serve as revenue for the state.
NFIB looks forward to the Massachusetts Senate and Governor Baker also supporting small business tax relief in the very near future.”