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Looking for a compromise on unemployment tax rates

O’Malley looks to stimulus to adjust unemployment taxes; business leaders are wary

Baltimore Sun, by Julie Bykowicz

Gov. Martin O’Malley has said he wants to help businesses by tapping federal stimulus money to lower their unemployment tax rates. But first he has to face down the toughest opponents of his plan: businesses.

The emerging battle has lawmakers scrambling for a compromise before employers face massive payment increases to the state’s unemployment benefits fund in about a month. It also puts the Democratic governor in the awkward position of pushing an immediate antidote that business leaders have decided is poisonous because it imposes long-term costs.


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