Evening star., 1935-08-12


maximum as a reward for stabilizins
employment in his establishment
Establishment of the employers pay
roll tax gradually. at l per cent in
1885, 2 per cent in 1887 and 3 per
cent thereafter, instead of applying
the maximum per cent rate imme-
diately. The national bill and the
State laws already enacted apply the
tax gradually.
Other Points at Issue.
Other essential features remaining
TO be settled are:
What number of employees should be
fixed as the rule for deciding whether
an employer is subject to the law?
The House bill fixes it at four. In
the national bill the House contended
for four. and the Senate for 10. As
finally agreed in conference. the ma
tional bill would recognize any State
law that f1xed eight as the number,
but States are free to go lower
How many weeks of benefit pay
ments to an unemployed worker should
be allowed annually? The Ellenboeen
bill allows 26 weeks. whereas State
laws thus far enacted have approx
mated Is or Is weeks. This question
is tied in with the House provision
leyying tax on the District Govern
ment to supplement the employer s
tax, and to provide the longer period
of weekly benefit payments. None of
the States, however. has imposed a
State tax up to this time.
The House bill was drafted with the
idea of developing a so-called model
plan to be studied by the rest of the
country. The Commissioners have OBJ
jected strenuously to making the Dis
trict an experimental laboratory in
this field Of comparatively new legis-
lation. They argue that since Wash
ington is not a large industrial center
it is not typical of areas where the
greatest unemployment problems are
likely to arise. They also have urged
the Senate not to require the District
go further at the outset than the
States.
Bill Limits Are Fixed.
The House bill would apply to per
diem workers in the District govern
ment. but would not apply to other
employees of the District or Federal
governments.
Members of the Senate Committee
already have made known that they
will change the bill to apply the pay
roll tax gradually here as elsewhere
Senator King has said he is de-
sirous of having the bill conform as
nearly as possible to the wishes of
the District Other members of the
committee who have given special
study to the subject. are Senators
Copeland of New York and Capper of
Kansas.
The House bill would allow the
board to raise the employers tax as
high as S per cent after 1910 If he
had poor record for keeping men
at work regularly, and in the House
committee it was intended to allow
a reduction from the normal 3 per
cent rate to 1 y per cent to an en-
ployer who stabiiizes work. At that
time, however, the national bill made
no provision for lowering of taxes and
the House struck out the reduction
feature Of the Ellenbogen measure.
Before the national bill finally
passed, however, the conferees adopted
a provision permitting tax reduction
credits, and also left States free to
adopt the separate company reserve
method of handling unemployment in
surance If they prefer that to the
Statewide pool system. The Ellen
bogen bill is based on a pool system.
Deductions Authorized.
What the national bill does is to
levy a Federal pay roll tax on en-
ployers and then allow employers to
deduct from that tax 90 per cent of
any similar tax imposed by local law.
The balance kept by the Federal Gov
ernment is to offset the cost of grants
to be made by the Government to
help States meet the administrative
cost of operating unemployment in
surance plans.
If local old-age and blind pension
bills are enacted, the Federal Govern
ment will match local pension pay
ments up to SIS a month. In other
words, it will pay half of a $50 pen
sion
The Senate committee on wednes-
day also may act on several other
House bills, including series of
changes in the law governing jury
service, 10 pending amendments to
the liquor control act and the pro-
posed semi-annual mechanical inspec-
ton of automobiles.