With an unemployment rate of 9 percent and hundreds of thousands for Hoosiers out of work, the General Assembly’s first priority in 2012 should be addressing unemployment in this state. Senate Democrats believe the focus should be on long-term progress and an understanding of how small businesses are taking an increasing role in our economy, not on lowering expectations or putting out-of-state interests above those of Hoosiers.
Online sales tax
Indiana retailers, who employ more than half a million Hoosiers, are losing an estimated $2.9 billion in business annually to online retailers. The proposed legislation would require all online retailers with any presence in the state to collect sales tax, leveling the playing field for local businesses and providing the state with an estimated $200 million in uncollected sales tax revenue. The bill will be authored by Sen. John Broden (D–South Bend) who offered a similar measure in 2011.
Work share to avoid temporary lay-offs
An option already available to businesses in twenty-one states, “work share,” evens out the economic highs and lows for businesses and allows them to keep workers on the job during slow periods. The program allows employers to reduce the workweek of their employees in lieu of layoffs. The affected employees receive a portion of the unemployment benefit they would receive if laid off relative to the reduced work hours.
For example, if an employer could schedule employees to work four days (32 hours) a week for six months as an alternative to layoffs, the employer would develop a plan and applies to the state for a work-share unemployment benefit option for the employees. If the plan is accepted with a 20 percent reduction in work hours, the employees would apply and receive 20 percent of the unemployment benefit for which they would be eligible if completely laid off. Senate Democrats will support the House bill expected to be authored by Rep. Mary Ann Sullivan (D-Indianapolis) on this issue.
Restricting employer use of consumer credit history in hiring
Past credit decisions should not hold individuals back from gainful employment. Under proposed legislation, an employer would be prohibited from using an applicant’s credit history for hiring and employment purposes. Exceptions would include managerial positions and positions with the Attorney General, local government, law enforcement, or those where credit history consideration is required by federal law. The bill will be authored by Sen. Greg Taylor (D-Indianapolis).
Prohibiting discrimination against the unemployed
A second proposal aimed at helping the unemployed would prohibit using language in job ads that discriminates against unemployed people. During a time of such high job loss in Indiana, unemployed workers should not be further punished for economic conditions they cannot control. Similar legislation has been approved in New Jersey and is pending in New York. The bill will be authored by Sen. Jean Breaux (D-Indianapolis).
More funding for local roads and bridges
The quality and maintenance of Indiana roads, bridges and other infrastructure is an essential component to Indiana’s economic development and our quality of life. Less money is being devoted to local roads, and the results are evident around the state with crumbling asphalt, closed bridges and rural roads turned back to gravel. It’s not a funding crisis, it’s a matter of priority. The state needs to prioritize resources to preserve existing roads and bridges before embarking on new highway projects. More costs to Hoosiers through tolls and fees on taxpayer-funded roads and bridges are unacceptable, as is shifting the repair costs to future generations. Legislation to address this is being finalized and will be authored by Sen. Tim Skinner (D-Terre Haute.
Capital Access Fund for entrepreneurs and start-ups
Small businesses and entrepreneurs would benefit if the state followed through on a program created with bipartisan support but not funded under the recent Republican state budgets. The program is designed to provide low-interest loans to Indiana businesses for start up or expansion costs through a revolving state fund. Since the fund has languished under the direction of IEDC, the proposal would move the fund to the Indiana Finance Authority where other state revolving funds are managed. A similar proposal was introduced last year and the legislation will be authored this year by Sen. Vi Simpson (D–Elletsville).
New hire tax credits for smaller employers
Indiana’s small businesses deserve the same tax benefit for new hires that is available to larger companies under the New Employee Tax Credit established in 2010. The proposed legislation would eliminate the 10-employee minimum qualification now required under the program, providing any sized business with a tax credit equal to 10 percent of the wages paid for qualified new hires during a 24-month period. This proposal was introduced last session as SB 583-2011 and will be authored this year by Sen. Greg Taylor (D-Indianapolis).
Preference for Indiana employers in state contracts
Taxpayer money spent on state contracts should help put Hoosiers to work, not profit out-of-state companies. The proposed legislation would require that public works projects be awarded to companies and subcontractors that can guarantee at least 80 percent of the employees working on the project are Indiana workers. This proposal was introduced last session as SB 369-2011 and will be authored this year by Sen. Jim Arnold (D-LaPorte).
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