Evening star., 1938-03-23
REDUCTION URGED
IN JOBLESSLE
Controllers Favor Slice in
Tax to 80 Per Cent of
Federal Rate.

The District unit of the Controllers
Institute Of America voted last night
to direct an appeal to the District Un-
employment Compensation Board in
support Of amending the local act to
reduce the District unemployment tax
to 80 per cent of the Federal rate.
In effect the suggestion would mean
decreasing the local tax to 81 per
cent rather than per cent as at pres
ent, a difference which would mean a
considerable amount of money to the
larger employers in Washington. With
O.3 OF per cent also payable to the
Federal Government, the total tax
then would be 3 per cent instead of
3.S per cent
Virtually all State laws, enacted
after that for the District, placed the
local taxes at 80 per cent of the Fed
eral levy rather than equal to it.
Issues Are Discussed.
Last nights action of the controllers
was taken after a discussion of some
half dozen issues arising in connection
with operation of the local unemploy-
ment compensation law John L.
Bischoff, counsel of the District
board, attended the meeting to present
the boards side of the questions under
consideration.
Sharing prominence with the prob
lem of reducing the tax burden on
District employers were questions of
merit rating, separation reports, limi-
tation of the District tax to apply only
to the first $4,000 of salaries, simplifi-
cation Of the benefit formula and
amendment to prevent accumulation
OF waiting time, requiring instead that
three weeks of unemployment imme-
diately precede payment of benefits.
In connection with the merit sys-
tenn. Mr.. Bischoff disclosed that the
board has been considering some
change in the present provision, by
which the tax after 1941 would be
adjusted in accord with employment
turnover, but with the aggregate for
al employers still to equal 3 per cent
OF the total taxable pay roll The at
torney said thought had been given
to asking elimination of the present
merit plan provision. with a study to
be undertaken during the next two
years and the results embodied in an
amendment before l94l.
Mr.. Bischoff told the group the
local administration feels that a 2
per cent tax would be fully adequate
to carry the unemployment load here
rather than the per cent levy now
applicable. Unless some adjustment
could be made with the Federal Gov
ernment in this regard, however, the
District employers still would be re-
quired to meet the per cent require
ment of the Federal tax.
The question of accumulation of
waiting period arose during discus
sion Of present requirements of re-
porting. the suggestion being made
that reports be submitted only at
time of actual separation of employees
rather than monthly or quarterly as
at present.
An obstacle to this scantier system
of reporting was pointed out in cases
where business firms go out of ex-
istence with no records left of their
employees and little chance of obtain
ing back data after the firm has
ceased to do business.
Other Formula Studied.
Mr.. Bischoff also disclosed, in re-
sponse to complaints about the pres
.ent involved system, that the local
administration has been studying
simpled benefit formula. Most favored
idea, he said, is to take total earnings
for full quarter and divided by 13
to get an average weekly wage. Bene-
fits then might be paid in a ratio of
81 to each S6 earned, within the pres
ent minimum and maximum limita-
lions. 4,
Last nights discussions were led
by William R. Little, controller for
The Evening Star. with John Davies
of woodward & Lothrop presiding
over the meeting. Others participat-
ing were Ernest L. Osborne of the So
cial Security Board, Jesse Goodwin
OF woodward g. Lothrop. Humphrey
Lloyd of Washington Properties. Har-
old G. Hayden of Potomac Electric
Power Co. and j. E. Heberle of the