By Palmer H.C.R. No. 113
HOUSE CONCURRENT RESOLUTION
1-1 WHEREAS, The Federal Unemployment Tax was imposed by the
1-2 Social Security Act passed by the United States Congress in 1935 as
1-3 part of New Deal social legislation for the purpose of coercing the
1-4 states into enacting unemployment compensation laws that met
1-5 federally mandated standards; and
1-6 WHEREAS, The unemployment tax provisions of the Social
1-7 Security Act were repealed and reenacted by the United States
1-8 Congress as the Federal Unemployment Tax Act in 1939; and
1-9 WHEREAS, The Internal Revenue Service has for many years
1-10 extracted from Texas employers federal unemployment taxes equal to
1-11 approximately twice the amount that the federal government has
1-12 returned to the state in the form of administrative grants; and
1-13 WHEREAS, The emergency 0.2 percent Federal Unemployment Tax
1-14 Surtax authorized in 1977 accomplished its goal of repaying the
1-15 debt from that year's recession in 1987 and is no longer needed,
1-16 yet has remained in full effect; and
1-17 WHEREAS, The United States Department of Labor has used the
1-18 threat of withholding these funds to compel the state to comply
1-19 with its directives, which has prevented the Texas Legislature from
1-20 enacting unemployment compensation laws that are more suitable to
1-21 the needs of the people of this state; and
1-22 WHEREAS, In addition, federal control over programs that
1-23 assist and train the unemployed for the workplace has hindered the
1-24 ability of the State of Texas to adapt federally funded job
2-1 training and workforce development programs to the specific needs
2-2 of state and local economies; and
2-3 WHEREAS, Texas has instituted an innovative workforce
2-4 development system that minimizes administrative costs and
2-5 maximizes the ability of communities to customize workforce
2-6 development services to local conditions; and
2-7 WHEREAS, The Federal Unemployment Tax is a burden on Texas
2-8 employers and a drain on the state's economy, and federal control
2-9 of state unemployment insurance, job training, and workforce
2-10 development programs has impeded the state's efforts to help the
2-11 unemployed by hindering program effectiveness and the ability to
2-12 respond quickly to local and state needs; now, therefore, be it
2-13 RESOLVED, That the 75th Legislature of the State of Texas
2-14 hereby respectfully urge the Congress of the United States to
2-15 repeal the Federal Unemployment Tax Act and the Surtax and transfer
2-16 control of state unemployment insurance programs and federally
2-17 funded job training and workforce development programs to the
2-18 states; and, be it further
2-19 RESOLVED, That the Texas secretary of state forward official
2-20 copies of this resolution to the president of the United States, to
2-21 the speaker of the house of representatives and the president of
2-22 the senate of the United States Congress, and to all members of the
2-23 Texas delegation to the congress with the request that this
2-24 resolution be officially entered in the Congressional Record as a
2-25 memorial to the Congress of the United States of America.