Feb. 6, 2009

Statement from Rep. Glenn Anderson on unemployment benefit increase bill approved today

The Washington State House of Representatives today voted on House Bill 1906 to address unemployment insurance payments to out-of-work Washingtonians. The bill passed 91-2.

Rep. Glenn Anderson  R-Fall City, offered an amendment to the bill to create an unemployment system to fit the middle-class workforce affected by the layoffs at large companies such as Washington Mutual, Boeing and Microsoft. His amendment was defeated and he voted against the bill. 

"The current unemployment insurance system is a 70-year holdover from the 1930s Great Depression reflecting an economy that no longer exists today. We're seeing a whole new kind of worker in our unemployment lines today, especially here in Washington. The system we have set up now is set up more for low-wage workers, leaving our high-wage earners with nowhere to go.

"If we want to keep our middle-class afloat and keep the skilled workforce in Washington, we must address their needs in this tough economy. We want all workers to be taken care of, including our middle-class. My amendment would have addressed this critical need to support all families in these tough times.

"I also could not support the bill because, not only did it not help middle income earners, it didn't have any provisions to help our small, privately-held businesses. My amendment would have given relief to small businesses that may otherwise have to close up shop. By offering the small business owner access to the unemployment system, some of them may be able to keep their doors open, which would help aid the economic recovery by creating jobs when things start to turn around.

"Helping families with an extra weekly benefit amount is something I wholly support, but addressing the worker side without helping the employer side is like rowing a canoe in a circle expecting to get across the lake. We want the unemployed to be helped out in this time, but we need to keep our businesses afloat as well.

"The current unemployment insurance system is disconnected from and no longer responsive to the real economy. We need a better deal for middle-class families and the small businesses that provide 80 percent of the jobs here in Washington.  Window dressing legislation, as unemployment and layoffs continue to rise, sounds good but doesn’t really help."

Rep. Anderson’s amendment would have provided enhanced benefits for middle income wage earners and offered an 85 percent tax credit for small businesses to offset the current burden of state unemployment insurance taxes, which are among the highest in the nation.

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Editor note: A summary of Rep. Glenn Anderson's amendment is attached.

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