Evening star., 1943-05-18
Experience Tax
Rating Plan Up
In Committee
Senate D. G.. Unit
Moy Act Today on
JobIess Levy Bill

SOOieSS Levy Dill
The Senate District Committee
may act this afternoon on the bill
to give Washington the experience
rating method of taxation for un-
employment compensation, which
won, favorable report yesterday
from Senator Bushfield, Republican,
of South Dakota, who was named a
one-man subcommittee to study it.
The committee, presided over by
Senator McCarran. Democrat, of
Nevada, will consider at the same
time these two measures:
To authorize suspension during
the war Of the law limiting women
in industry to 48 hours a week,
where the Minimum Wage and
Industrial Safety Board finds it
necessary.
To do away with the assessment
OF abutting property owners for
half the cost of highway paving,
but retaining the assessment for
curbing. The highway work would
be financed out of the motor vehicle
tax fund, on the theory street i'm
provements benefit city-wide traffic.
Passed by House.
All three bills have passed the
House but may have to go back
for action on amendments.
In urging passage of the new un-
employment compensation plan,
Senator Bushfield pointed out that
81 States now have the experience
rating system, under which the
tax rate of each employer is regu-
lated according to his record for
stabiliztng employment.
The existing local law applies a
uniform tax of 2.7 per cent OF the
payroll on all employers. and has
resulted in piling up in the Treas
ury reserve that totaled $36 COS, ,256
on May IS. This was an increase
OF $2,285,00 in the last six weeks,
and Senator Bushfield observed that
1t would meet the present rate of
benefit payments for IS years if no
further funds were collected.
The new bill would graduate the
tax from 81 per cent down to one
tenth OF l per cent, depending on
each employers record.
Would Liberalize Benefits.
The bill also would increase the
rate of unemployment benefit pay
ments from S18 for 18 weeks to $40
for 20 weeks; protect the status of
employees who leave to enter the
armed services, and enlarge the de-
pendency condition to include the
spouse and any child regardless of
age.
The only substantial amendment
recommended by Senator Bushfield
was to strike out House provision
that would have applied the unem-
ploymert tax to non-profit religious,
charitable, scientific or educational
organizations If they engage in ac-
tivities to influence legislation.
The Senator approved without
change the basic features of the
experience, or merit rating, system
adopted by the House. In defense
of this system, the Senator said in
his report:
There are those who would de-
stroy the merit rating employer re-
serve principle now in force in most
OF the States. The reason back of
this endeavor is the hope to fed
eralize our entire social and eco
nonic system, and, in particular,
unemployment compensation. They
oppose the principle of the individ-
ual employer reserve accounts They
favor the plan of a national pool
under the administration of the
Federal Government, by which all
reserves of all employers in all
States, including the District of
Columbia, shall be placed in one
great pool, with the same rate Of
contribution to be paid by employ
ers throughout the Nation.
States Would Lose Control.
Under such proposal, the States
would lose all control over the un-
employment compensation system
and the reserves built up by citi-
ASiio VA VIC oldCCS Woulu pdoo CO1ll-
pletely under the jurisdiction of the
Federal administration"
The bill was Endorsed at recent
hearings by all of the leading trade
and civic organizations, while local
spokesmen for the AFL and CIO
opposed it. The Associated General
Contractors of America filed a brief,
contending the merit rating system
would be inequitable, because stabil-
ity of employment is inherent in
some lines of business, but not in
others.
Chairman McCarran expects to
offer an amendment to the bill regu-
lating women's hours of work, to
insure one day off in seven. Exist
ing law prohibits women from work.
ing more than eight hours a day
or more than six days week. For
the duration of the war the House
voted to permit exceptions to both
the hourly and daily limits. Sena-
tor McCarran would remove the
hourly ban. but limit the work week
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