Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-22
D. c. SECURITY BILL
WILL Be COMPARED
WITH FEDERAL ONE
Senate Subcommittee May
| Wait for National Act
Decisions.
lELLENB0GEN MEASURE
HEARING NEXT WEEK
Body to Weigh Provision In.
creasing Pay Roll Tax to
| 5 Per Cent.
BY ]. A. O'LEARY.

branches of Congress are at work next
week adjusting their differences over
the national social security bill, Sen
ate District Subcommittee will be con-
sidering the local security measures to
determine what changes would be
necessary to nave them conform TO the
national standards.
Since several important features of
the Federal program are still awaiting
determination, it may be that the Dis
trict Subcommittee will await the de-
cisions of the conferees on the ma
tional bill.
Meanwhile, Senator Copeland OF
New York, chairman Of the District
Subcommittee, said he would hold a
hearing on the Ellenbogen unemploy-
ment insurance bill some time next
week. He said Senator King Of Utah,
chairman of the full District Commit
tee, conferred with him yesterday and
suggested the holding of the hearing.
With Copeland on the subcommittee
is Senator Capper Of Kansas.
Provisions May Be Changed.
There are several provisions in the
Ellenbogen bill, as it passed the House
which the Senate subcommittee is
planning to weigh.
One is the section increasing the
employers payroll tax from 3 to 5
per cent when he has a poor record
for stabilizing employment, but max
ing no allowance for lowering OF
the tax when he shows good record
for keeping mel steadily employed.
As Representative Ellenbogen origi-
nany reported his bill to the House,
this variation in the tax would have
worked both ways and was intended
as an inducement to industry to sta
Billie employment. On the floor OF
the House, however, it was amended
to provide onIy for the increase In
the tax. At that time it was felt the
granting Of corresponding reduction
below the basic per cent rate would
be inconsistent with the national bill.
Wisconsin Plan Used.
Since then, however, the Senate has
broadened the scope Of the unem-
ployment insurance section Of the ma
tional bill by including the Wisconsin
plan of giving employers credit for
stabiLdng employment, and this is
one of the questions the confereeS
will settle early next week. Most OF
the States are waiting for the na-
ticual law to pass before writing their
unemployment statutes, but OF the
i've States that have acted, three OF
them - Wisconsin, Utah and New
Hampshire - would have to rewrite
their laws unless some provision along
the line of the Senate amendment Is
adopted In conference.
Another question to be considered
is that the local unemployment bill
as passed by the House starts out with
the nav roll tax at per cent, whereas
the theory of the national law Is that
the tax would be stepped up from
1 to 3 per cent over q three-year
period. The national bill levies a
Federal tax to induce States to enact
unemployment laws, by allowing de-
duction up to so per cent Of the Fed
eral tax when similar payments are
required locally.
Another question Is whether the
District government should be re-
uuired, as in the House bill, to add
to the fund a contribution equal to
1 per cent Of the pay roll OF all en-
ployers subject to the measure, In
order to provide a longer period OF
benefit payments.
Pensions Less Difficult.
It is not expected there viii be
much need for discussion on the old
age pension bill for the District, since
that measure was considered last year
and is much less complicated than
the subject of unemployment tnSur-
ance.
One Of the main issues facing
House and Senate conferees on the
national bill is the Clark Senate
amendment, to allow industries to re-
main out of the Federal contributory
old-age annuity system. If they
operate q private retirement plan
equal to or better than the Govern
ment program. This amendment re-
lates to that feature Of the security
program calling for a joint Federal
tax on employees and employers to
build up reserves with which to re-
tire those now gainfully employed.
No laws would be enacted by the
States or the District in relation to
this plan, which is to be operated
entirely as a Federal undertaking.
Under the Clark amendment, COM
panies would be exempted from these
old-age annuity taxes if the Security
Board found they had private retire
ment systems meeting the required
standards.
OId-Age Total $50 Monthly.
The old-ago pension bill in the Dis
trict Committee has no connection
with this Federal annuity system, but
Is intended to provide assistance to
persons already IS or over, under
another section of the national bill
in which the Federal Government
will make q grant to match the local
payment, up to limit Of SIS month
per person from the Federal Govern
ment, or total Of $50.
Meanwhile speculation continued as
to possible appointees to the National
Social Security Board. Among those
being mentioned are Miss Josephine
Roche, Assistant Secretary Of the
Treasury, and Edwin G. White, who
headed the Economic Security Com