Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-09-26
BEING
BUILT AGAINST
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board, with the federal treasury send
ing out the checks. When that day
comes, presumably, these state syst
TENS will die out. There are provis-
ions for payments to an estate in the
event of death.
(All this. of course, is written on
the theory that no court decision will
invalidate the entire scheme. That.
however, is a possibility, according to
some legal minds, because the law
taxes all payrolls, including intra-
state business, and because the tax
,, is earmarked for a specific purpose.
| That earmarking is evaded in the &C
tual language of the law, but the
WOrkS.)
| OF equal importance to old age
pensions is the system of unemploy-
ment compensation, as it Is called in
the. social security act UnemplOy-
ment insurance is always an intri-
cate business, fraught with hazards.
! (The British system went bad in the
depression because OF the dole, but
is now being reorganized). Made
generous enough actually to care for
all those who are out of work in a
depression, and it breaks any system
set up. Made conservative enough to
be safe and sound under all condi-
lions, and it provides lite relief in
emergencies.
LayOff Protection.
| Unemployment compensation is de-
signed to help regular employees of
industry when temporary layoffs cut
them from the payroll. So the gov
eminent is launching this system as
a phase of social security, and here
too comes a payroll tax. when old
age pensions and unemployment COM
pensation are both in full operation,
industry the country over will be pay
ing six per cent of it's total payrolls
into the treasury for this program.)
This tax starts next year at one per
cent, increasing for two years until
it is three per cent.
The act lays down a few broad
principles, but is mostly club-or
incentive, should we say?-to the
systems into operation. If business
is contributing three per cent of its
payroll into a state system, it will
get credit for ninety per cent of its
federal payroll tax. The state will
work out it's own plan, with just a
few requirements-itm must be admin
istered, operated and financed SO as
always to be sound; payments must
be made through public employment
offices or other approved agencies;
individuals denied compensation must
be granted hearings; no unemplOy-
ment benefits shall be paid for two
years; money collected must be placed
in the unemployment trust fund of
the federal treasury for investment;
if an unemployed person is offered
work he need not take it if wages
and conditions are less favorable than
for similar work, nor if the job Of
fered is the result of a labor dis
pute, nor if any conditions of union
membership are prescribed.
|
apply to domestic or farm labor, to
government or welfare organization
employees, and affects only employers
of eight or more persons during
twenty days of a year.
The state may, if it wishes, require
contributions from employees as we'll
as employers; that is left to the state
| Ac 10
is all a matter of what the state
wishes to do-and this is one of the
things the Minnesota legislature is
supposed to tackle in special session
this fall. The important question of
what an unemployed person would
get under this system is one to be
worked out: the experts on the ma
tional committee on economic secur-
ity have done some figuring, and it
works out this way for Minnesota:
If a man who becomes unemployed
is to draw fifteen dollars a week, he
could draw that amount for fourteen
weeks after two-week waiting per-
iod; sixteen weeks after a three-week
wait, and for seventeen weeks after
a four-week waiting period. This is
: based on the 3 per cent payroll tax
If there were a per cent assess
ment, either from industry entirely
or from employer and employee, the
fifteen dollar weekly benefit could run
for twenty-one weeks after a two
week waiting period.
Other Provisions Made.
In Minnesota some 100000 en-