Evening star., 1942-11-13
Randolph 10 Ask.
Passage Monday
Of Jobs Tax Bill
Expects No Opposition
In House to New
McGehee Proposal

An amendment to the District Un.
employment Compensation Act, re-
vlsing the method of payroll tax
alton in way estimated to save
employers more than $5,0OO,OOO a
year while maintaining an adequate
reserve fund, had the approval of
the House District Committee today
and was headed for early considera-
ton in the House, perhaps Monday.
Ihe measure, substituting for the
present fiat tax rate of 81 per cent
an experimenting plan of a type
adopted by most States, was report
ed out by Chairman Randolph late
yesterday after poll of the District
Committee. Mr.. Randolph acted
Immediately after the Judiciary
Subcommittee. headed by Repre-
sentative McGehee, Democrat, of
Mississippi, indorsed the measure.
Representatives Randolph and
McGehee expressed hope today that
the bill could be placed on the con-
sent calendar in the House Monday.
which would mean that if there was
no objection from the floor it could
be passed by unanimous consent and
rushed to the Senate, in hope that
congressional action could be COM
pleted at the present session.
Expect No Opposition.
II District Committee leaders are
unable to get the bill on MONDAYS
calendar, they will bring it up in
the House week later-on District
day. They anticipate no opposition
on the floor and expect the legisla-
ton to 60 through without objection.
Representative McGehee intro
duced the bill recently as substi-
tute Tor a previous measure which
ne had before the Judiciary Sub
committee lowering the tax, but still
maintaining fat rate, with the
assessment dependent on the total
IN the unemployment reserve fund.
A study of the local unemploy-
ment insurance convinced Mr.. Nc
Gehee, he explained, that the expe-
rlence-rating plan was fairer and
based on sound insurance principles.
He also felt that this plan could pass
Congress without difficulty, while
there might be opposition to the
other
The new McGehee bill adopts for
the District an experience-rating
plan which has proved successful in
many States. Under the amended
law, employers would be rated ac-
cordlng to the stability of their pay
rolls over period of several years.
Thus, an employer with relatively
little turnover in jobs, one MAIN
tanning steady work for his en-
ployes, would pay less than one who
hired and fired frequently.
Insurance experts pointed out to
the committee at hearings that such
a. plan was followed in industrial
accident insurance and in all other
forms OF protection, with the greater
risk paying the higher rate.
2.7 Per Cent Maximum.
The amended act would set up
reserve for every employer in the
, District whose tax payments
amounted to more than the benefits
paid out to employees he had dis
charged for any reason other than
incompetence or misconduct. No
employer would pay more than 27
per cent, the present fiat rate, and
the great majority, tax analysists
estimate, would pay far less.
The rate would range downward
to one-tenth of l per cent of the
payroll, depending on the amount
accumulated in the employers re-
serve This lowest rate would be
paid by an employer whose reserve
equaled or exceeded 35 per cent of
his average payroll
With more than $4,000, 900 ac-
cumulated at present in the Dis
trict's unemployment compensation
reserve fund, officials concerned.
businessmen and labor leaders have
been unanimous in demanding
downward revision of the tax.
John A. Marshall, executive off,
Ger Of the District Unemployment
Compensation Board, testified at
hearings that sl0.000,000 would be
an ample fund to safeguard the un-
employed here. The rest of the
money, he said, was going to waste
so far as the District was concerned
There was no opposition to revision
OF the tax. The only differences
were over the method by which this
was to be accomplished.
The bill not only preserves all un-
employment benefits contained in
the present act, but increases them
Instead of receiving maximum bene-
fits OF sl8 a week for period of 10
weeks, now the top compensation,
eligible unemployed could receive q
total of $40 for 20 weeks.