Evening star., 1940-05-05

AACCoAA6 VI VIC OlSCElCt COMMITTEE,
In view Of the wide agreement that
the District pay roll tax rate is too
high, the dissatisfaction with the
present level of benefit schedules
and the mounting size of the unem-
ployment benefit reserve fund.
In this connection, it was recalled
that whereas, under present law, the
total OF benefit payments last year
amounted to less than $l,5OO,OOO pay
roll tax collections exceeded $6,7OO,-
600. The benefit reserve fund, at
recent count. had exceeded SIT ,5OO,-
600 and is expected to go beyond
10000, 900 by the end of the year
without change in the law. The
present pay roll tax rate is 3 per
cent. the highest in the country.
Under the compromise amend
ment plan, as under other bills, the
pay roll tax rate would be reduced
to 2.7 per cent, and be limited to
the first $4,000 of the salary of any
covered employe, In line with the
Federal policy as adopted by the
States.
Would Set Benefit Minimum.
The compromise bill also would
establish minimum benefit pay
ment Of $6, whereas the present law
fixes no minimum; reduce the
waiting period" from three to two
weeks; fix the basic maximum dur
alton Of benefits at 10 weeks, as
against the basic period of is weeks
under present law; increase from SIS
to SIG the maximum weekly benefit
payment, and make eligible an ap-
plicant who had earned as little
as $l25 within a year.
Labor spokesmen have protested
emphatically that the compromise
plan would eliminate extra benefit
allowances for recipients who have
dependents, but supporters of the
new plan insist that the District is
the only jurisdiction which now
grants such extra outlays. &C. I. o.
spokcsmen also have protested that
the pending plan would disallow
benefit payments for persons on
strike or subject to labor lockout,
contrary to the provisions of the
laws of some States.
In statement to Chairman
Randolph Of the House District
Committee, approval of the COM
promise plan was registered by
spokesmen for the following Wash
ington business organizations:
Board OF Trade, Merchants and
Manufacturers Association. Motion
Picture Theater Owners of the Dis
trict, District Bankers Association,
Washington Restaurant Association,
Washington Building Congress, Ma
tional Capital Group of Controllers,
District Trucking Association. Dis
trict Institute of Certified Public
Accountants. Washington Automo-
tive Trade Association, Graphic Arts
Association, Washington Taxpayers
Association, Building Owners and
Managers Association, Washington
Real Estate Board Laundry-Dry
Cleaning Owners Association, Linen
Supply Exchange. Master Builders
Association and the District Dental
Society.
Approval Urged.
In urging approval Of the COM
promise plan, spokesmen for the 18
Washington business groups de-
clared:
This bill is compromise which
meets some of the desires of all
concerned and one which can be
enacted into law during the short
period remaining of this session of
Congress.
'Thls bill gives to the District of
Columbia taxpayers no more favor
able rate than that now enjoyed
by those of Al States under the
amended provisions of the Federal
Social Security Act.
Even with this tax reduction
and the increase in benefits the
District unemployment compensa-
ton fund, which now exceeds ST..
000, 900, will continue unnecessarily
to grow at the rate of more than
$4,000, 900 annually. Clearly, further