Gov. Doug Ducey, in partnership with the Arizona legislature, deposited $759 million of the American Rescue Plan in the Unemployment Insurance (UI) Trust Fund to keep taxes down for small businesses.
Ducey’s deposit on Monday adds to the $62 million deposited by the Legislature this session. His goal was to protect businesses in Arizona from an increase in taxes, which he said would have occurred without the investment and to ensure the health of Arizona’s UI Trust Fund.
The state pays eligible individuals unemployment benefits out of the Unemployment Insurance Trust Fund, which is funded primarily by employers.
“Small businesses are the backbone of Arizona’s booming economy, and we’re committed to protecting them from a tax increase,” Ducey said in a press release. “They create jobs and support our communities, and it’s crucial that we don’t let massive tax hikes run them out of business.”
He thanked the Legislature for their partnership in depositing funds into the UI Trust Fund and helping Arizona’s small businesses thrive.
Danny Seiden, president and CEO of the Arizona Chamber of Commerce, said that job creators appreciate the deposit.
“A healthy trust fund prevents employers from being hit with higher taxes, while also ensuring that Arizonans experiencing job loss can access a bridge to their next opportunity in our fast-growing economy,” he told The Center Square.
Sieden thanked Ducey and the Arizona Legislature for their pro-growth policies and said that he expects “that Arizona’s economy will continue to attract new job creators and the trust fund balance will remain strong.”
This article was originally posted on Ducey makes $759 million deposit into unemployment trust fund