NM House Approves Business Tax Increase

New Mexico – The House has approved a proposal to raise taxes on businesses to shore up the program that provides unemployment benefits to New Mexicans who lose their jobs.

The unemployment insurance trust fund will run out of money by next year because of increasing claims by jobless workers. The fund is financed by taxes on employers.

The House unanimously approved a bill Saturday to boost taxes on businesses by $20 million.

The legislation also transfers $100 million from a reserve account to help rebuild the unemployment fund.

Supporters of the bill said if no action is taken by the Legislature then taxes on employers will automatically go up by $200 million next year to ensure there's enough money in the unemployment fund to cover claims.

Copyright 2010 The Associated Press.