Evening star., 1942-10-11
Roosevelt Considers
LIBERALIZATION Of
State Job Insurance
Plon Reported Among
Projects to Follow
Tax Bill Enactment

Tax Bill Enactment
Federalization of the States
unemployment compensation sys-
TENS which would place under
direct control of the Treasury
Department approximately So
600, 100000 in funds collected by
State governments since 1887 for
their qualified idle workers bene-
fit was reported yesterday to be
among the social security ex-
pansion proposals President
Roosevelt said he would send to
Congress following the enact
ment OF the tax bill.
Congressional sources went to the
record to verify this report. At the
same time they pointed out that the
omission last week of $3,273,0O0 for
REIMBURSEMENT of United States EN-
ployment Service salaries of former
State employees to Federal classifi-
cation level" from the 15-billion
dollar supplemental war appropria-
ton bill and the unfavorable action
on the $500, 1000, 900 work displace-
ment legislation several months ago
were clear warning of the congress
sional fight ahead.
McNutt Reveals Plan.
At lengthy hearings on the 1943
supply bill before the Labor Federal
Security Appropriations Subcommit- =
tee, Federal Security Administrato tor
Paul v. McNutt revealed that the
President had a plan calling for
liberalization of certain social Sc
curity functions. He added that the
President planned to send the plan
to Congress following enactment of
the tax bill. The President an
nounced Friday that he would send
a social security expansion message
to Capitol Hill.
Mr.. McNutt informed the con-
gressional committee that Il think
liberalization of unemployment COM
'pensation is indicated I feel very
definitely that unemployment is a
national and not a State problem. ~
Congressional sources say the
plan for expansion OF the Social
Security Act now before the Pres
ldent includes combination of all
social insurance into a Federal sys-
tenn which would cover old age
survivors, disability and unemploy-
ment insurance. The objective of
this consolidation would be to OBJ
tain the maximum amount of secur-
lty at minimum cost.
Single Pool Fund.
A single pool fund for the multi
pie insurance, including temporary
disability, is reported to be another
one of the recommendations the
Social Security Board has submitted
after lengthy study.
That plan would have employees
share equally with employers the
cost OF all benefits, including unem-
ployment compensation. Employ
ers now pay per cent of their pay
rolls for unemployment compensa-
ton g. per cent? and old-age in
surance contributions Il per cent?.
Employees pay per cent of wages
solely for old-age insurance.
Organized. labor. is reported IA
vorable to the federalized unem-
ployment compensation plan in Or
der to bring about some uniformity
in benefit payments, and it is said
that labor sources have been felt
out on the pool fund. This plan
would reduce employers tax from
4 per cent to 21a per cent of pay
rolls, while that of the employees
would be increased from l to 21z
per cent of wages. The Federal
Government would make its con-
tribution through payment of ad-
ministration.
Proponents of the plan claim
there would be a greater spread of
AAoAAs AAAOA Z C2A ASStAfS uoC VI UllS SIlOl
nous reserves of the State funds
and the Federal Government would
be better able to deal with a de-
preston.
Offers Better Protection.
A national unemployment COM
pensation system, proponents also
point out, would offer better pro-
lection to employees who might be
employed in more than one State
For example, a man may work a
few weeks in one State, take a Job
for short time in a second State
then 60 to work in a third. The
varying period of unemployment
would be insufficient to permit the
building up by the worker, idle after
the third job, of a standing enabling
him to obtain unemployment bene-
fits in any of the three States.
1t is claimed the Federal system
would equalize the cost of unem-