DES MOINES— The Office of Iowa Governor Kim Reynolds today (Wednesday), released a statement saying the Governor has introduced the Unemployment Insurance Reform Bill to the Iowa House and Senate.  She proposes lowering the maximum tax rate to the lowest allowed by federal law (5.4%), cutting the taxable wage base by half, and simplifying the unemployment insurance system by reducing the number of tax tables.

Currently, Iowa has the second-highest taxable wage base in the region and ranks ninth in overall trust fund balance despite being the 32nd most populous state.  “Iowa is overdue for an overhaul of our unemployment insurance system,” Gov. Reynolds said. “Our trust fund balance sits near a record high $2 billion, while unemployment claims are at a record low length of nine weeks. We need to stop over-collecting on Iowa employers and allow them to reinvest savings in their businesses and employees. A simplification of the system is necessary to maintain our momentum in state tax reform and ensure we stay competitive with surrounding states.”

Her office says Gov. Reynolds’ proposed changes to Iowa’s unemployment insurance tax system are projected to save businesses $974 million over five years.