Evening star., 1935-12-15
by HAL HAZELRIGG.


the last session Of Congress,
II is still imperative until the
States pass approved measures to
carry out its provisions. The neces-
sary appropriations, baked when the
late Senator Huey P. Long spectacu-
lar filibuster throttled the deficiency
bill in the sessions closing hours, are
expected to be made when Congress
meets again in January. Yet the
States, some of which also will be in
session then, must act to put the
national program into force.
The Social Security Board confers
on plans at Washington this week
end with State public welfare direc-
tors and commissioners. AS the zero
hour for its application approaches,
the public begins to ask itself: What
will social security do?" In the case
of business men, it is: What will it
do to me?" In the case of en-
ployes, it is: What will it do for me?"
The two paramount plans in the
social security act include provisions
for a cooperative Federal-State sys-
tenn of unemployment compensation
and the other for Federal oldage
benefits. Special sections of the act
provide also for children, for the blind
and Federal aid for State and local
public health services. But the unem-
ployment and old-age sections are the
most far-reaching. costly and contro-
versial. entirely dwarfing the other
provisions.
25,OOO,O0O Affected.
Approximately Is 900 900 workers in
the United States will be affected by
the old-age benefit provisions, and
about 23,0O0,000 of them will come
under the provisions for unemploy-
ment compensation. The magnitude
of the program is indicated by the
reports of congressional committees.
The taxes on pay rolls, which will
raise the unemployment funds, was
estimated at $500, 10000 for the fiscal
year 1867. increasing to $4,000 000.-
900 by 1850. The reserve account to be
sustained for unemployment insurance
alone is estimated at $3.50. 900 900 by
1897, 81 900 900 900 by 1910, s29,000,-
600 900 by 1860 and sac, ,0O0, ,000, 900 by
1880.
Fundamentally the unemployment
compensation idea is to create reserves
from which funds may be paid to en-
pioyes who can find no work when
employment slackens. AS explained in
the research report devised by the
Kansas Legislative Council, the Fed
eral-State tax offset system is planned
under the social security act. The
State must pass a law and compen-
sation would be paid by it, with the
/ Federal Government merely acting as
| trustee of the State reserve funds and
aiding the State administration in pay
| ing its expenses A Federal pay roll
| tax is levied which may be offset by
State employment compensation tax
| laws.
Grants are to be made by the Fed
eral Government for administration,
but not for the actual payment of
compensation. An appropriation of
$4,000, 900 has been authorized for the
fiscal year beginning July /. 1885, and
| SAC, 900 900 annually thereafter.
U. S. Pay Roll Tax.
Every business man who employs
eight or more workers must pay the
Federal pay roll tax, based on the
total amount of wages he pays. For
the calendar year 1886 this tax will
be l per cent of the wages; for 1887,
per cent: thereafter, 8 per cent.
Revenue from this tax, however, will
not be used to pay unemployment
1 COMPENSATION, which must be paid
from the taxes the States themselves
levy. If State does not pass an un-
employment compensation law, the
revenue from the Federal pay roll tax
collected in that State goes into the
United States Treasury for general
appropriation. 1t is not apportioned
to other States.
II the State does come into the
security program and levies unemploy-
ment compensation laws, employers
are subject to both the State and the
Federal pay roll taxes. However, he
may credit against the Federal tax the
amount of contributions paid (before
the date for filing the tax return) to
the State unemployment compensation
fund, up to 80 per cent of the Federal
tax. Only those employers subject to
State employment compensation laws
approved by the Social Security Board
are granted credit against the Federal
pay roll taxes.
Here is what unemployment COM
pensation will mean to the individual
employe. Any worker performing a
service for an employer within the
United States will be included within
the scope of beneficiaries and he will
have to yield none of his own salaries
or wages to benefit. This applies to
all workers with the exception of those
employed in the following ways:
Exceptions Listed.
l. Agricultural labor.
2. Domestic service in a private
home.
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