March 2, 2005

SALEM — Rep. Larry Galizio (D-Tigard) urged his House colleagues Wednesday to support a hefty 12-percent reduction in the unemployment insurance tax paid by employers. The bill, HB 2127, passed the House with bipartisan support, and now goes to the state Senate.

“I’m proud to stand with my colleagues in both parties to support a bill that eases the tax burden for businesses and strengthens jobs in my home community of Tigard,” Galizio said. “House Bill 2127 is a vote for efficiency and accountability. Part of government’s job is to help the private sector thrive, which means we have more jobs, more prosperity, and better communities.”

Galizio is a member of the House Revenue Committee, which considered the bill and gave it unanimous approval.

House Bill 2127 provides a new way of calculating the unemployment insurance taxes that businesses pay, enabling the state to cut the tax rate by more than $200 million over the next four years. The bill will result in actual tax reductions of $30 million-$35 million in 2005-07, and $170 million to $195 million in 2007-09. Because Oregon’s Unemployment Insurance Trust Fund contains over $1 billion, the savings to employers does not threaten the state’s ability to pay unemployment benefits.

“In my view, the public and private sectors should have a symbiotic relationship,” Galizio told his House colleagues. “The citizens of House District 35 expressed a desire for government that is accountable and efficient—one that fosters an environment that attracts industry and creates good family-wage jobs. House Bill 2127 meets those criteria.”

Galizio said the relationship between the public and private sectors, though often rocky, requires hard work and open communication.

“House Bill 2127 exemplifies the utility and efficacy of a strong public-private partnership,” Galizio said. “Through hard work, negotiation, and creativity, a bill was created that reduces business taxes by 12 percent, stabilizes funding of services to business and job seekers, and attracts new business to Oregon.”

This article is from a March 2, 2005 post on www.bend.com