Senate committee proposes new tax to fill unemployment fund

The Senate Economic Development committee has proposed a tax on Vermont workers that would go towards replenishing the state's unemployment insurance fund, which ran out in February and is currently being funded with loans from the federal government, according to a story in the Burlington Free Press. The committee passed the bill with a 3-2 vote.
The 0.02 percent payroll tax would raise around $24 million a year. Additionally, the proposal would increase taxes on employers. The maximum unemployment benefit would be kept at $425 a week, but changes would be made regarding who can collect unemployment. Changes would include making those fired for misconduct ineligible to file, and requiring workers who are laid off to wait a week before filing. The tax on workers would mean that the tax on employers would not be raised as much as the Douglas administration had proposed.