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Business tax increase averted

By KCUR

Kansas City, MO. – Missouri business owners are getting a reprieve from what would have amounted to a small tax increase.

The state says the federal government has tentatively agreed to a new payment plan over loans to help pay unemployment claims a few years ago.

Without the agreement the feds could have raised unemployment taxes, which businesses pay.

That could have cost businesses as much as $50 per employee.

Tammy Cavender, with the Missouri Department of Labor says the arrangement was possible because the state's economy has improved.

"There are less people who are unemployed and less people who are claiming unemployment benefits, so with the combination of more money coming in and less money coming out of the funds, we're able to make these additional payments," Cavender said.

The state first borrowed the money from the federal government in 2003 and 2004.

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