Evening star., 1935-08-09
Local Social Security.

The value of the principle represented
in Senator Clarks amendment to the
old-age insurance plan has never been
in dispute Most people will agree that
private pension plans, more generous to
employees than the new, untried Govern
ment plan, should be preserved. The
chief difficulty, apparently, was that
wholesale exemption, from the law, OF
private plans which met Government
standards would throw the Government
scheme out of actuarial balance and
that new, private plans would spring
into existence, with the main objective.
not of pensioning employees, but of
escaping the tax.
The agreement finally reached on
what to do about the Clark amendment
is reasonable under the circumstances.
For the time being it is dropped from
the social security legislation. House
and Senate committees, however, have
been named to work out compromise
which would preserve its valuable prin-
ciple without danger of abuse by con-
scienceless employers. The tax support
ing the old-age insurance plan does not
60 into effect until December, 1896. BY
that time the Clark amendment will
doubtless have been revised to meet the
objections Of its opponents.
The social security legislation, at the
same time, has been placed in shape for
immediate enactment. This clears the
way for final redrafting and consdera-
tion of the District social security legis-
iation, of which the Ellenbogen unem-
ployment insurance bill is of chief i'm
portance.
Senator Kings committee will meet
In the next few days to put this bill in
final shape. The main changes sought
by the community, as represented by
the Commissioners and those who ap-
peared before the Senate District Com
nlittee are these:
l. To begin the local pay roll tax at
one per cent, in conformity with NATIONAL
legislation, reaching three per cent at
the end of two years instead of i'm
mediately levying three per cent tax
on all affected employers.
2. To include a so-called merit clause"
which will reward those employers, by
pay roll tax reduction, who succeed in
stabilizing their employment. That is
now possible under terms of the national
legislation.
3. To place administration of the local
bill, which affects local citizens, under
control of the District government, thus
preserving in some degree, at least, the
principle of local administration of local
laws which applies in the States. The
only reason for placing administration of
the local bill with the National Social
Security Board is to give this board an
opportunity to experiment in the Dis
trict That is unnecessary, presenting
possibly disconcerting future for the
guinea pigs.
4. To eliminate from the bill the pro-
posed contribution, amounting to one
per cent of local pay rolls, from the gen.
eral tax funds of the District. That is
an unusual requirement which does not
apply in those State laws so far enacted.
The necessity for such contribution
has not been demonstrated. When it is
demonstrated there will be time enough
to consider it.
The employers of eight or more persons
under the national legislation are af-
fected, while the local bill affects en-
ployers of four or more. The local
legislation should conform to the ma
tional in this respect. The national
legislation excludes domestic servants.
The local legislation includes them when
there are four or more in household.
Unless all domestic servants are en-
cluded, which is manifestly impractical,
the local bill should be amended to ex-
clude them, in conformity with the
national act.