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1-5 federally mandated standards; and 1-6 WHEREAS, The unemployment tax provisions of the Social 1-7 Security Act were repealed and reenacted by the United States 1-8 Congress as the Federal Unemployment Tax Act in 1939; and 1-9 WHEREAS, The Internal Revenue Service has for many years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.