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The Nation

June 16, 1989

Over objections of the Bush Administration, the House Ways and Means human resources subcommittee voted to raise the tax that finances federal unemployment insurance. The proposed tax increase, which would be paid by employers, is the first voted this year by any House or Senate subcommittee. When fully effective in 1992, the proposed increase would cost employers $4 for each employee per year, a total of $10.6 billion over the next five years. The tax increase is part of a broad package of changes in federal unemployment and welfare programs, including a $1.77-billion child-care initiative over the next five years.

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