Governor Sean Parnell today commended the Senate Labor and Commerce Committee for moving Senate Bill 25, the governor's legislation to end automatic increases in the Unemployment Insurance (UI) tax when the Alaska UI Fund is deemed solvent. By giving the Department of Labor commissioner the discretion to halt automatic payroll tax increases when the UI Fund is solvent, Alaskans and their employers will keep more of their hard-earned paychecks.
"I applaud the committee for moving this legislation to lower Alaskans' taxes," Governor Parnell said. "Alaskans work hard for their paychecks and with Senate Bill 25, we're ensuring the State is not stockpiling more money than it needs while also allowing Alaskans to keep more of their hard-earned salaries. I urge the Legislature to act this session and pass this crucial legislation without delay."
Current law requires tax collections from employers and employees, even if the UI Trust Fund is solvent. As of March 15, the Alaska Unemployment Insurance Trust Fund had a balance of $257 million.