[Congressional Record Volume 155, Number 136 (Thursday, September 24, 2009)]
[Extensions of Remarks]
[Page E2368]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            UNEMPLOYMENT COMPENSATION EXTENSION ACT OF 2009

                                 ______
                                 

                               speech of

                             HON. TOM COLE

                              of oklahoma

                    in the house of representatives

                      Tuesday, September 22, 2009

  Mr. COLE. Mr. Speaker, I rise today to speak in opposition to H.R. 
3548, the Unemployment Compensation Extension Act. While I have 
supported unemployment extensions in time of economic emergency, and 
will continue to do so, I will not give my support to this particular 
legislation because it unfairly taxes states with strong economies to 
pay for workers in states that have engaged in poor economic planning.
  As you know, the bill would extend unemployment benefits for an 
additional 13 weeks in states where the average unemployment rate is 
over 8.5 percent. To pay for this extension, the legislation extends 
the 0.2 percent Federal Unemployment surtax for one more year. This is 
a tax that all employers are required to pay regardless of the state 
unemployment rate. In other words, citizens in states with low 
unemployment will be paying for benefits in states that have been 
fiscally irresponsible or have mishandled their own unemployment fund.
  Currently, Madam Speaker, there are 27 states with an unemployment 
rate of over 8.5 percent. But many states have engaged in commonsense 
approaches to economic development to avoid this catastrophe. In my 
home state of Oklahoma, for example, our unemployment rate, though 
rising, is still only at 6.8 percent. As many of you know, Oklahoma 
suffered a major economic downturn in the 1980s due to the oil bust. 
However, during the late 1980s and early 1990s, the state of Oklahoma 
and business community learned from this experience and made great 
strides in economic diversification. In the years following, housing 
prices in Oklahoma remained stable and infrastructure grew. Today, 
Oklahoma's energy, agricultural and entertainment industries are strong 
and help to support a robust, diversified economy.
  At the same time, the state of Oklahoma has worked hard to ensure 
that its unemployment fund remains solvent. Though many states' 
unemployment funds were not prepared for a major recession, Oklahoma is 
one of the only states that will not have to borrow from the federal 
fund to repay benefits to unemployed workers. In fact, Madam Speaker, 
the state is not raising the unemployment payments next year. It is 
entirely inappropriate to force the citizens of states like this to pay 
a tax in order to pay for the irresponsibility of others. Oklahoma 
already pays more in unemployment taxes than they receive back from the 
system, and this extension only makes the situation worse.
  In closing, Mr. Speaker, I again would like to emphasize that I am 
not opposed to ensuring that Americans have means to support themselves 
in economic hardship. However, I do believe that it is unwarranted to 
tax the citizens of the 23 other states who have produced good economic 
growth and responsible governance.