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Columbia Missourian

State lowering tax on workers' compensation benefits

By The Associated Press
October 29, 2008 | 2:19 p.m. CDT

JEFFERSON CITY — Missouri is lowering a tax on employers for workers' compensation benefits from 1 percent to 0.5 percent starting next year.

But a surcharge that businesses also pay into a state fund for twice-injured workers will stay at 3 percent. A 2005 law capped employer contributions to the Second Injury Fund at no more than the 3 percent level.

The Second Injury Fund was created after World War II to help encourage the employment of injured war veterans. But a state audit and an independent financial analysis have both forecast it to run out of money.