Evening star., 1942-10-14
BY CARTER BROOKE JONES.

Relief for Washington employers
who pay a payroll tax of 81 per
cent into an unemployment benefit
fund which has grown far beyond
the demands on it moved a step
closer today as definite plan of
amending the District law was
sponsored by Chairman McGehee
Of the House District Committees
judiciary subcommittee
Mr.. McGehee said he would sup
port the so-called experience-rating
plan of reducing the tax for each
employer in proportion to the sta
bility of his employment record.
He hopes to call the subcommittee
together in the next few days to
report bill to the whole committee
Chairman Randolph Is ready to
press for quick action from the
District Committee. He feels that
the Districts reserve fund is out
OF all proportion to the needs it fills.
Jobless Benefits Retained.
Mr.. McGehee has redrafted fiat
rate reduction plan which he intro
duced earlier in the session. The
new bill substitutes experience rat
ing for the present fiat tax which
hits all employers alike. At the
same time, the measure increases
benefit payments to new maximum
of $40 for 20 weeks of unemploy-
ment.
Mr.. McGehee explained that he
felt. after thorough study of the
problem, that the experimenting
plan was the fairest and most feasi-
BILE way of amending the act.
OIL Per Cent If Justified.
Under the McGehee bill, no en-
pioyer would pay more than 81 per
cent and the tax would be scaled
down to- point as low as OIL per
cent If the employment record Justi-
fled it. Each employer would have,
at the District Unemployment Com
pensation Board. a paper reserve
based on his experience" The re-
serve would be charged with unem-
ployment benefits paid to employees.
The tax would range from the
present assessment, 81, downward
under a formula based on the per-
centage CT the employers reserve to
his annual payroll.
The old McGehee bill reduced the
rate on sliding scale, with each
employer paying the same tax and
the rate depending on the total
amount in the reserve fund. Mr.
McGehee and others have expressed
doubt that this measure would be
accepted ins Congress, as it differs
from the plan followed in most OF
the States.
Earlier Bill Urged.
Another angle to the tangled I'M
employment compensation situation
brought report from Chairman
Randolph for the District Com
mittee yesterday favoring suspension
of old experiencing rating clause in
the existing act, which would auto
matically 60 into effect next sum-
mer but which critics have said
would be difficult to administer.
The law would, If left unchanged
put in next summer an experience
rating system quite different in
effect from that of the McGehee
bill. Under this plan the DUG boarc
would segregate employers into rat
ing classes. beginning July l, 1943
and would levy on them graduated
tax ranging from 4 per cent to II:
per cent.
The Randolph report to the House
pointed out that the board is re.
quired to determine this rate 'ir
such manner that the estimated
total average contribution rate fol
all employers shall be not less thar
81 per cent"
Pointing to the reserve of more
than $4,000, 900, Mr.. Randolph
wrote that the board feels that {
reserve of s10,00O,000 would b.
sufficient to protect the solvency
Of the fund" The West Virgini,
Representative added:
"At the present contribution rat.
OF 81 per cent the benefit provision.
of the act are easily complied with
and additional unneeded million!