Shoring up trust fund comes on the heels of yesterday’s poll showing slight signs of possible recovery
BOISE, Idaho, Sept. 4, 2020—Gov. Brad Little’s approval yesterday of a $200 million transfer of CARES Act money to shore up the state’s unemployment insurance trust fund, instead of raising taxes on small-business owners to fill the deficit, drew hearty praise today from Idaho’s leading small-business association.
“The governor’s action is great news for Idaho’s Main Street, mom-and-pop enterprises that are already struggling with so much in this coronavirus-scarred economy,” said Suzanne Budge, Idaho state director for NFIB. “Hitting them with a higher cost on something they’re legally obligated to pay at a time when many are debating whether to stay open or re-open might have tipped the decision in favor of closing or remaining closed.”
According to a news release issued by the governor’s office, “Without today’s transfer, businesses would have to pay nearly double in unemployment insurance taxes next year to keep the Idaho Unemployment Insurance Trust Fund solvent moving forward.
The move is intended to encourage more hiring by preventing tax increases for businesses of more than $300 per employee that could have occurred if Governor Little had not taken decisive action now.”
The timing of the news came right on the heels of yesterday’s release of NFIB’s monthly Jobs Report, a national bellwether on the Main Street economy, that showed a seasonally adjusted net 21% of small businesses planning to create new jobs in the next three months. This is up 3 points from July and 20 points above April’s reading, an unprecedented recovery.
Commented NFIB Chief Economist Bill Dunkelberg, “The small business labor market is recovering and moving in the right direction. Small businesses are planning to hire more workers, keep employees on the payroll, and their customers happy. However, there is still uncertainty and many small businesses are counting on additional financial assistance.”
NFIB Idaho’s letter of support for the state’s UI decision can be read here.
Keep up with the latest on Idaho small business at www.nfib.com/idaho or by following NFIB on Twitter @NFIB_ID
For more than 77 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.
National Federation of Independent Business/Idaho
802 W. Bannock, Ste. 301
Boise, ID 83702