The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-17

lation which will Cd impose uni
form tax on the employers to whom
the act is applicable, beginning
with the year 1886, and 20 create
machinery for participation in the
administration of unemployment
compensation.
The tax should be imposed upon
all employers who have employed
four or more employees for a reason
able period of time (any Is weeks
of the taxable year for example) &,
and should be measured by per-
centage of the employers pay roll.
BY 1888, the rate of tax should be
3 per cent of the pay roll; but in
the first two years, if economic re-
covery has not progressed salts
factorily, we recommend a lower
rate, and suggest that the index of
industrial production of the Federal
Reserve Board may we'll be used to
determine whether the rate in the
first and second years shall be l
per cent, 2 per cent or 3 per cent.
We are opposed to exclusions of
Federal act, but favor the estab-
lishment of a separate nationally
administered system of unemploy-
ment compensation for railroad
employees and maritime workers"
Cooperation Is Demanded
Against the tax imposed in the
Federal law" a credit, up to 80 per
cent of the tax, should be allowed
for the money the employer has
paid to the proper state authority
as contributions for unemployment
compensation purposes pursuant to
state law. These credits, however,
should be permitted only if the
state is cooperating with the Fed
eral Government in the administra-
ton of unemployed compensation,
expending the money raised solely
for benefits, and is depositing all
contributions as collected in an I'M
employment trust fund in the Unit
ed States Treasury.
IF state, to encourage stabiliza-
ton of employment, permits partic-
ular industries or companies to
have individual reserve or guaran-
teed employment accounts (such
accounts to be kept by the state
authority, but with deposit of the
funds in the United States Treas
ury) or allows lower rates of con-
tributions 10 employers not having
such individual accounts on the
basis of their favorable experience,
an additional credit beyond the
amount contributed in a particular
year may be granted in the Fed
eral act We recommend, however,
that such credit be allowed in all
cases only on the condition that
the employer has discharged in full
his obligations under the state law
and continues to pay st least l per
cent into the pooled state fund.
Must Maintain Reserve
Further, such an employer with
an individual reserve account be-
fore becoming entitled to any addi-
tional credit, must have and main
tain reserve equal to at least Is
per cent of his pay roll, and an en-
ployer with a guaranteed employ
ment account a reserve of 712 per
cent of his pay roll; while no addi-
tional credit for any reduction in
rates payable to a pooled state
fund may be allowed until after the
state law has been in operation for
five years.
ITO encourage efficient admins
tration, without which unemploy-
ment insurance will fail to accom-
plish its purpose, we believe that
the Federal Government should aid
the states by granting them Suffi-
cient money for proper adminiStra-
ton, under conditions designed to
insure competence and probity.
Among these conditions we deem
selection of personnel on merit
basis vital to success. We also
recommend that as a condition,
both of grants-in-a for admins
tration and of the allowance of any
tax credits for payments made
under any state unemployment
compensation act, the state must
have accepted the provisions of the
agner-Peyser act public employ
ment service) and provide for the
payment of unemployment compen-
sation through the public employ
ment offices established under such
act. A grant-in-aid for admins
tration would not create any new
burden on the Federal Government,
as it would be paid for by the
amount of pay roll tax over and
above the credits allowed for con-
tributionS to state funds.
Call Plan Experimental
"As an essential part of the Fed
eral law, it should be made a re-
quirement for any tax credits that
all moneys collected for unemploy-
ment compensation purposes under
state laws Including those credited
to individual industry or company
accounts) be deposited as collected
in the Treasury of the United
States in a trust account to the
credit of the state, to be invested
and liquidated as the Secretary of
Treasury may from time to time
direct. Withdrawals from the fund
n1ITnK DEL lee EDnM