Monday, March 16, 2009

Dunnam, Coleman: Perry's Decision Will "Not Play Well in Conservative Circles"

From the Quorum Report:
Reps. Jim Dunnam (D-Waco) and Garnet Coleman (D-Houston) predicted today that Gov. Perry’s decision to reject $555 million in enhanced unemployment insurance aid would not play well in conservative circles once people realize that the state’s employers would have to make up that money through higher unemployment taxes.

“We’re talking doubling the tax on small employers,” Dunnam said while meeting with members of the Capitol press corps this morning. He said the facts in favor of accepting the aid would make it difficult for Perry to maintain his position.

He pointed to statements made by Bill Allaway of Texas Taxpayers and Research Association (TTARA) and the economist Ray Perryman yesterday in favor of taking the UI money. Perryman, who testified Thursday before Dunnam’s select committee on the federal stimulus package said that accepting the enhanced aid would have an immediate impact on the economy and would create $2.66 of economic impact for every $1 in aid. That’s due to the effect of the aid money flowing from unemployed workers into local businesses and through the rest of the economy.

So far, Perry's decision to reject the $555 million federal unemployment funds seems to have helped him rally the GOP base.

But in the long term could Dunnam and Coleman be right? Could this decision come back to haunt Perry? Tell us what you think in the comments.

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