Evening star., 1936-11-29
FIGHT T|NC0NGRESS
ON TAX EXPECTED
Failure of States to Qualify
for Unemployment Levy
Benefits Cited.
By the Associated Press.

Benefits Cited.
By the Associated Press.
A battle in Congress over the un-
employment taxes was foreshawoded
yesterday by q survey showing about
half the States have no plans to
qualify for the 1896 BENEFITS before
the December 81 deadline.
Ofiicials in several States were
counting on an extension of the time
for qualifying. despite administration
opposition. But in others, there was
renewed talk Of convening the Legis-
latures in special sessions to enact
unemployment insurance so the States
could get their share of the taxes
that must be paid anyway.
Preparations were under way at the
Social Security Board to make public
estimates of the amounts States will
lose unless they join in with the Fed
eral law. This was designed as an
added inducement for early action.
A credit of up to 90 per cent against
the Federal tax is allowed employers
for whatever they pay in State un-
employment taxes.
R. Gordon Wagenet, director Of the
unemployment bureau at the Security
Board, expressed satisfaction at the
turn Of events since the Supreme
Court on Monday upheld the New
York State law.
Events Of Week Cited.
More has happened this week to
promote the insurance idea than IN
any week since enactment OF the Fed
eral law in 1885," he said.
Hardly had the highest court spoken,
on a four-to-four division, than in
quiries from the States about their
position rained upon the Security
Board. The Legislatures Of Pennsyl-
vania and Maryland were called into
session for December and S re-
spectively, to conform to the Federal
program. Arizona Joined up on We'd
nesday, with a statute effective in 80
days unless vetoed by Gov. Moeur.
That same day the California Supreme
Court upheld the law Of that State.
Colorado yesterday became the six
teenth State to have its law approved
by the Security Board. The Legis-
latures of Connecticut and Oklahoma
have the problem up. Action in
Oklahoma Is expected next week.
Studies of the requirements to
share under the Federal law were
sped in Maine, New Jersey and Vir-
ginia. Special legislative sessions in
the next fortnight or so were con-
sidered probable in those States. Un-
official talk of q session was heard
in Delaware.
Kump Defers Decision.
Gov. Kump of West Virginia dis
cussed the situation with the Penn
sylvania and Virginia Governors by
telephone, but deferred q decision
whether to summon the Legislature
Gov. Holt Of Montana said he was
looking into the matter carefully"
In Arkansas, Gov. Futrell has offered
to call session if requested by Gov
elect Bailey, who thus far has made
no request.
Planning no special session now,
Gov. Chandler of Kentucky expressed
the belief that Congress would amend
the law and said he would summon
the legislators after that action Other
States where no immediate session
is planned include:
Florida. Georgia, Illinois, Iowa,
Kansas. Michigan, Minnesota, Mis-
souri,. Nebraska, Nevada. North Caro-
lima. New Mexico North Dakota, Ohio.
South Dakota, Tennessee, Vermont
and Washington.
The Washington law recently was
invalidated. A new one Is planned
when the Legislature meets in Janu-
ary.
Whatever happens in the next
month, number of other Legislatures
are expected to take up the question
in January. Failure to share in the
proceeds of the per cent tax on
1896 pay rolls will not disqualify the
States from sharing in the 2 per cent
tax for 1887.
Among those planning to advocate
more time for the States to partici-
pate in the 1896 fund is Senator-elect
Herring of Iowa, now Governor. The
question of participation will be left
to regular session Of the Legislature
there, meeting on January IL.
The tax on workers wages, under
fire in labor and some other quarters,
was defended by an administration
official yesterday as an effective con-
troll against excessive pension demands
in the future.
w. r. Williamson, actuarial con-
sultant to the Social Security Board.
spoke out in an interview in vigorous
defense Of the levy which is scheduled
to 60 into effect January !, at the rate
Of per cent, against the wages Of
| 26,000,000 workers to be covered by
| the Governments old-age pension
system. A similar amount will be COL
lected from the workers employers.
Williamson's defense of the tax. first
to come publicly from Federal Sc
curity official since the election, closely
followed disclosure that the American
Federation of Labor will ask Congress
to reduce workers contributions to
the old-age benefits and make up the
difference by general taxation.
Curb on Pensions Seen.
Williamson, long connected with
the Travellers Insurance Co. before
joining the administration, said the
tax on workers wages would let them
know that the cost Of social budget
ing" against old age must be paid by
the public.
when demands for the payment
of fantastic pensions are made" he
said, "the public will realize that
granting them would mean more
taxes. I believe that will establish