Evening star., 1942-11-19
Entered ~ second-class matter post ONCE.
Washington, D. c.
Member of the Associated Pres.
Tricky Little Clause

r. representative OCnulCeS lone OBJ
lection in the House on Monday pre-
vented desirable amendment of the
District Unemployment Compensa-
ton Act, to reduce the tax rate and
to increase the unemployment bene-
hts. In his own language, the reason
ne objected was that "a tricky little
clause that is in here will wreck prac-
tlcally all the social legislation on
the books if it is adopted The theory
OF this whole thing is that the strong
Will help the weak. Instead of that,
we are going to reverse that trend if
this bill is adopted, and it will be the
weak who will be called on to helm
the strong"
That does not make sense. The
tricky little clause" to which Mr..
Schultz refers is the experience
rating, under which future tax rates
OF employers would be computed on
the relation between the employers
tax payments and the unemployment
benefits paid from his taxes. This
tricky little clause" is written into
the Federal Social Security Act.
Only through adopting that principle
can State reduce it's unemployment
compensation tax rate. It is in actual
operation in thirty-four of the fifty
one Jurisdictions covered by unem-
ployment compensation statutes. In
four other jurisdictions the principle
will become effective within eighteen
months. OF the remaining thirteen.
twelve have made provisions for
studying this method of applying the
tax. Certainly it cannot be said with
any truth that the experience rating
will wreck practically all the social
legislation on the books if adopted"
Mr.. Schulte's reference to the
theory that the weak should help the
strong evidently refers to the idea
that by putting all State reserve funds
under control of the Federal Govern
ment, a large reserve, like the Dis
trict's excessive $3O,OOOOOO reserve
fund-far out of proportion to actual
needs-could be used to bolster the
reserves OF some State which con-
tinues to pay low benefits. This is
the liberalization" theory, ending
State control of tax rates and re-
serve funds and putting the whole
business under control from Wash
ington.
The States are against this theory.
Their Representatives in Congress
have opposed it in the past and
would do so again. Those who favor
1t are opposed to the experience
rating for the District, because the
experimenting principle CONTRA
diets the liberalization principle.
And as long as the taxpayers of
the District can be used as guinea
pigs, the injustice of compelling
them to pay an excessive tax, with
three OF every four dollars they pay
going into the enlargement of
reserve fund already too high, makes
no difference.
This amendment of the District
law should have It's day in court and
be considered by the House on it's
merits. Let Mr.. Schultz and others
argue their point. Let the objections
be stated and answered. But let
some attention be paid to the fact
that Congress-. in legiSlatinp for the
District, is local legislature, acting
In the interest and welfare of the
District of Columbia, without refer
ence to the pleas of special minority
groups who are the advocates of va
rious theories they would like to see
applied to the Nation as whole