Governor and legislative leaders announce tax relief for small business
Governor Hogan was joined by Senate President Bill Ferguson and House Speaker Adrienne Jones this week for an announcement that included a major priority of NFIB members. Together, they announced a supplemental budget appropriation of $1.1 billion to the state’s Unemployment Insurance Trust Fund (UITF).
The move came on the heels of a letter sent by NFIB and other business groups asking the Governor and legislative leaders to consider using newly available federal stimulus to shore up the state’s unemployment insurance system. Like many other states, Maryland’s UITF came under tremendous stress as a result of the economic crisis brought on by COVID-19. Small businesses were seeing their unemployment insurance tax rates increase 400-500% with no sign of relief in the near future.
NFIB already succeeded in securing an experience rating waiver for small businesses forced to lay off or furlough employees during last year’s unprecedented economic crisis. This couple with the transfer of federal funds into the UITF will protect Maryland’s small businesses from unsustainable UI tax rates.
NFIB issued the following statement in response to the announcement:
“Shoring up the Unemployment Insurance Trust Fund has been a priority of our members dating back to the beginning of the pandemic. Small businesses are facing unemployment tax hikes of four to five hundred percent. Others missed out on state agency programs aimed at helping struggling businesses recover. But with today’s announcement, we hope Maryland’s small business owners can get back to work safer and stronger than ever.
We’d like to thank the Hogan Administration and legislative leaders for directing this money towards critically important assistance programs that have helped countless small businesses weather this storm. The $1.1 billion appropriation to the state’s unemployment insurance system not only insures claimants continue to receive benefits but it will also hold the line against unsustainable tax hikes for employers.”