John Cornyn: “Amendment No. 135 My first amendment has to do with the Federal unemployment surtax. In the 1970s, the Unemployment…”

“Amendment No. 135 My first amendment has to do with the Federal unemployment surtax. In the 1970s, the Unemployment Trust Fund faced financial strains, so Congress imposed a surtax to bring money into the unemployment system, the unemployment compensation system, in order to meet its obligations. That debt was paid off in the 1980s. Congress has continued, however, to collect the unemployment surtax, proving the maxim once stated by Ronald Reagan that the closest thing to eternal life here on Earth is a temporary government program. I think this proves that. The Federal unemployment surtax should have expired 20 years ago. Since 1987, the surtax has taken approximately $28 billion out of the pockets of U.S. businesses. Is that $28 billion over 20 years worth the broken promise to eliminate it? I think not. Elimination of the surtax, which this amendment will do, will save businesses across the country-- and in my particular State, $135 million--but it will save businesses across the country proportionate amounts. This is an easy and logical way to trim payroll taxes.”