Henderson daily dispatch., 1936-12-08

ments are exempted from this tax,
which is paid by employers only and
not Icy employees.
Governor Ehringhaus continues to
decline to make public any of the de-
tails of the bill, pending the return
of Attorney General A. A. F. Seawell
from Washington, where he has
taken the bill already drafted to pres
ent it to the legal division of the So
cial Security Board for it's approval.
When asked how long Attorney Cen
eral Seawell would remain in Wash
ington, Governor Ehringhaus replied:
Until he gets the bill in a form
that will be acceptable to the Social
Security Board and until it or it's
legal division assures him that the
bill is in form that will be accept
able. We are not going to run the
risk of presenting a bill to the Gen
eral Assembly that might later be
held as INADEQUATE by the Social Sc
curity Board. We have already enact
ed one bill which we believed was
adequate and which would have been
but for the contention of young law
yer in the legal division of the Sc
curity Board that it would not do So
this time we are going to get the APP
prevail of the legal division before we
even introduce the BILL"
1t is expected that Attorney General
Seawell will return from Washington
with the approved bill either tonight
or tomorrow, so that it may be in
troduced in the House Thursday as
soon as it is organized and ready for
business. The bill as now written goes
into a great deal more detail than the
Cherry bill, enacted by the 1885 Cen
eral Assembly, the governor indicated
since it provides full and detailed ma
chinery for the levying and collecting
of the payroll tax of nine-tenths of
one percent. The Cherry bill, because
it was written and enacted some two
months before Congress enacted any
of the social security legislation, did
not provide for the Ievying Of any de-
finite tax, but provided that the gov
ernor and Council of State might re-
ceive contributions from employers
equal to whatever tax might be stipu-
lated. This new bill, since it will inn
pose direct and definite tax Oh all
employers, will be "rolI call'' bill,
making it necessary for it to pass the
House and Senate on three successive
days, thus requiring six days in all
to pass both houses, even without any
debate or discussion. Each memIoer of
the House and Senate will also have
to vote on the bill in answer to his
name at each of these readings.
When asked if the bill would do
more than levy the tax of nine-tenths
of one per cent and attempt to pro-
vide administrative machinery for car
rying out the unemployment insur-
ance plan in North Carolina, Cover
nor Ehringhaus said he could not an
swer that question. The general be-
lief, however, is that this bill will not
attempt to set up administrative ma
chinery and that the question of de-
Gliding how the law shall be admins
tered and by what agency will be left
to the new administration and the re-
gular session of the legislature which
convenes in January. Since no ben
efits will be paid out under the unem-
ployment insurance law until after
January 1, 1889, there is no rush about
setting up the administrative ma
chinery.
The tax will be imposed in the bill,
however, will be on payrolls during
the calendar year of 1896. This tax
will be due December 81 and will be
payable on or before January 30, 1887.
If the legislature passes the bill which
will be introduced, employers will pay
a tax of nine-tenths of one percent to
the State treasurer and a tax of one
tenth of one percent to the Federal
government, to be used for admins
trative purposes. The State treasurer,
after collecting the tax here, will send
his collection on to Washington,
where it will be held in special fund
earmarked and held to the credit of
North Carolina, from which benefit
payments will be made in North Caro-
lima after January 1, 1889.