Evening star., 1942-06-14
House Group
To Urge Cut
In Payroll Tax
McGehee to Report
Bill Reducing
Levy June u
By WILL p. KENNEDY.

Early action in the House on leg.
islation desigrCd to save Capital
employers upwards of $5,oOo,0oo a
year in payroll taxes will be sought
this week. Chairman McGehee OF
the House District subcommittee
that has been considering this bill
said last night he will report it
favorably to the full committee a
week from tomorrow with the recon-
mendation that it be placed on the
House calendar as soon as possible.
The subcommittee is to meet
Thursday to receive a report on q
conference to be held Tomorrow in
the District Building between Com
missioner Mason, Corporation Coun-
sci Keech and other District off,
ciaL, and representatives of the
Washington Housing Association, the
Builders Congress and the Alley
Dwelling Authority regarding i'm
provement of the housing situation
n the District, particularly regard
ing public health and adequate in
Spection as result of the existing
overcroWding. This conference was
arranged at hearing last week on
bill sponsored by Chairmen Ran
dolph and McCarran of the House
and Senate District Committees.
Would Set Up Sliding Scale.
Chairman McGehee explained
that the District payroll tax relief
bill rewrites the District Unemploy-
ment Compensation law, which was
passed seven years ago. 1t is now
proposed to set up sliding scale
tax schedule in which EMPLOYERS
contributions would be reduced from
~ per cent of the total wage paid
the employee to y of l per cent as
long as the unemployment fund re-
mains in excess of s10,0OO,0OO. The
fund has been accumulating so rap
Idly under the present rate that it
Is now more than $28,00O.O 900.
Estimates submitted to Repre-
sentative McGehee show that the
rates proposed in the rewritten bill
would remain in effect for 10 to Is
years, II the present rate of benefit
payments continues.
The 2.7 tax rate now In effect
brought in Sc, 6,493.5 $40 from EMPLOYERS
during 194l. Figures presented to
the McGehee subcommittee are that
under the proposed new tax rate
the employers would have paid but
$l,202,520, a saving of IS 5.291.O5O.
The benefit payments in 1941 were
the largest of record, S2,128. 1923. Mr..
McGehee emphasizes that the pres
ent $4,000, 900 in the fund would
not be reduced below a healthy
reserve of 100000 for at least
IL years, if the proposed O5 per
cent was approved by Congress.
See Payments Rising.
| Ohclals of the District Unemploy-
ment Compensation Board. how
ever, believe that benefit payments
to workers who become UNEMPLOYED
will substantially increase after the
war, and that this would auto
matlcally reduce the number of
years during which the proposed
lower rate would be operative.
The new bill also proposes to in
i crease the maximum of benefits
from $18 for 19 weeks to $40 for 20
| "o' Ao oSUo up plOcUuIc Dp
which members of the armed forces
would be eligible for these payments
after discharge from military serv-
Ice, with benefits based on the ac-
tual non-service earnings prior to
their military service.
Other sections of the proposed
new law would: Exempt real estate
agents from its provisions on the
same basis as insurance agents are
now exempt; prevent benefit pay
ments to claimants where unem-
ployment results from labor dis
putes-unless the board is satisfied
the claimant is not participant ting or
involved directly in a strike; dis
qualify claimants in the District
from receiving benefits during any
week in which they are seeking or
receiving benefits from any State;
reduce the waiting period before
claimants are eligible for benefits;
permit payment of dependent al
lowances to the spouse of a claim
ant-correcting an unintended ex-
clusion in the present act.
The bill would become effective
January /, next, if Congress ap-
proves it. Chairman Randolph has
agreed to call the full committee
into session to receive the subcom-
mittee report, as soon as he returns
to the Capitol on Tuesday.