Business Tax Increase Goes To Senate

New Mexico – A bill heading to the Senate will require New Mexico businesses to pay $128 million in higher taxes next year to maintain the solvency of the state program providing benefits to unemployed workers.

The legislation cleared the Senate Finance Committee on Saturday and goes to the full Senate for debate.

If nothing is done by lawmakers this session, the unemployment trust fund is expected to become insolvent next March. If that happens, employers face the prospect of even higher taxes to replenish the fund.

To reduce costs of the unemployment program, the legislation will eliminate jobless benefits for most unemployed individuals who are attending school full-time.

Copyright 2011 The Associated Press.