A bill to amend the Tax Equity and Fiscal Responsibility Act of 1982 with respect to the effect of the 1985 increase in the Federal unemployment tax rate on certain small business provisions contained in State unemployment compensation laws.

Amends the Tax Equity and Fiscal Responsibility Act to provide that States which allow certain small businesses to pay a nonexperience based State unemployment tax rate below 5.4 percent may gradually increase the unemployment tax rate for such businesses over a four-year period to equal the new 5.4 percent standard State unemployment tax rate for 1985 and thereafter.