Unemployment Compensation Extension Act Of 2009

Floor Speech

* Mr. COLE. Mr. Speaker, I rise today to speak in opposition to H.R. 3548, the Unemployment Compensation Extension Act. While I have supported unemployment extensions in time of economic emergency, and will continue to do so, I will not give my support to this particular legislation because it unfairly taxes states with strong economies to pay for workers in states that have engaged in poor economic planning.

* As you know, the bill would extend unemployment benefits for an additional 13 weeks in states where the average unemployment rate is over 8.5 percent. To pay for this extension, the legislation extends the 0.2 percent Federal Unemployment surtax for one more year. This is a tax that all employers are required to pay regardless of the state unemployment rate. In other words, citizens in states with low unemployment will be paying for benefits in states that have been fiscally irresponsible or have mishandled their own unemployment fund.

* Currently, Madam Speaker, there are 27 states with an unemployment rate of over 8.5 percent. But many states have engaged in commonsense approaches to economic development to avoid this catastrophe. In my home state of Oklahoma, for example, our unemployment rate, though rising, is still only at 6.8 percent. As many of you know, Oklahoma suffered a major economic downturn in the 1980s due to the oil bust. However, during the late 1980s and early 1990s, the state of Oklahoma and business community learned from this experience and made great strides in economic diversification. In the years following, housing prices in Oklahoma remained stable and infrastructure grew. Today, Oklahoma's energy, agricultural and entertainment industries are strong and help to support a robust, diversified economy.

* At the same time, the state of Oklahoma has worked hard to ensure that its unemployment fund remains solvent. Though many states' unemployment funds were not prepared for a major recession, Oklahoma is one of the only states that will not have to borrow from the federal fund to repay benefits to unemployed workers. In fact, Madam Speaker, the state is not raising the unemployment payments next year. It is entirely inappropriate to force the citizens of states like this to pay a tax in order to pay for the irresponsibility of others. Oklahoma already pays more in unemployment taxes than they receive back from the system, and this extension only makes the situation worse.

* In closing, Mr. Speaker, I again would like to emphasize that I am not opposed to ensuring that Americans have means to support themselves in economic hardship. However, I do believe that it is unwarranted to tax the citizens of the 23 other states who have produced good economic growth and responsible governance.

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