Rep. Demmer exposes Democrat plan to raise taxes, cut benefits

State Rep. Tom Demmer (R-Dixon) speaks during debate on SB 2803, the Democrats’ plan that shortchanges the state’s unemployment insurance trust fund.

The Democrats’ bill leaves $1.8 billion of the $4.5 billion total deficit in the state’s Unemployment Insurance (UI) Trust Fund UNPAID. The COVID-19 pandemic led to the deficit in Illinois’ UI Trust Fund that the state owes to the federal government. Until March 31, 2022, federal rules allow the state to deposit remaining federal ARPA money into the fund, of which the state has $6.9 billion that has not yet been spent. Since the Democrats’ legislation does not fill the complete $4.5 billion hole, the state faces interest penalties that will raise unemployment insurance taxes, making it a tax hike on jobs. the Democrat sponsor of the bill stated that benefit cuts to workers who’ve lost their jobs will be implemented to help reduce the remainder of the unpaid deficit. SB 2803 passed 68-43.

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