Evening star., 1942-10-07
Continued From Page B-1).

levied is through application of the
experience rating system. In con-
1erences held on this problem, the
committee has had the advice and
counsel of officials of practically
every type Of business in Washing
ton.
Recently, letters were sent to
more than 500 business houses in
the District asking for opinions on
this question. To date we have re-
celved 189 replies, out of which 1875
nave stated their belief in and SUD-
port OF the experience rating system,
"nue only four employers were op-
posed to 1t. BY this evidence of en-
ployer interest, our committee feels
That 1t adequately represents en-
ployers OF the District.
Many Would Qualify.
Under the provisions of the pro-
posed bill which We have indorsed,
over 80 per cent of the District en-
, ployers will be eligible to qualify for
a reduced tax rate of as low as one
tenth OF per cent. AS matter of
TACT, the formula, as included in this
Dill, assures employers representing
w per cent of the total taxable paw
= roll OF the District the minimum
rate OF one-tenth of per cent for
the hrst year of the operation of the
law, which would result in a saving
OF approximately $4,000, ,0OO."
John A. Marshall, executive officer
OF the District Unemployment Com
pensation Board:
There can be no valid argument
against reducing the present tax,
winch has yielded a reserve fund Tar
higher than We need. To get some
OF this money back into circulation
Is desirable objective. But tavor
the fiat rate in preference to expert
ence rating. The fiat rate is tairer
and more practicable.
Experience rating would place a
penalty on hiring people temporarily
This should be encouraged rather
than discouraged. A seasonal en-
ployer, knowing he would pay a
higher tax for hiring men he later
mad to lay off, would employ as few
as possible. Contractors, department
stores, hotels all have seasonal prob
lens, times when they take on extra
help, and they employ people other
wise out of work, helping to that ex-
tent.
No employer should be penalized
for something he can't help, and
many, by the nature of their busi-
ness, have seasons when they hire
large numbers and other times when
tney must cut their payrollS to the
bone"
Locher Gives Views.
John A. Locher, secretary of the
Washington Building and Construc-
ton Trades Council, American Fed
Grafton of Labor, and labor repre-
sentative on the Unemployment
Compensation Board:
"A contractor can't keep bricklay-
ers on the job while the carpenters
are laying the joists of building
He should not be taxed for what he
can't help. The AFL favors a flat
payroll tax The experience rating
system dlscourages an employer
from going into the labor market
and hiring extra, perhaps temporary
help. We feel that this system would
discourage employment.
I'VE favor reducing the present
high tax in the District, so that
money pouring into the reserve fund
and not needed for benefit payments
may be used for other purposes. But
we feel that the fiat rate is the fair
est plan.
The experience rating system
would require an accounting system
which would be terrifically involved
and we doubt whether it would work
at all. There would have to be an
individual account for each employer
to determine his rating, and it is
doubtful whether an equitable basis
of working this out could be devised