Evening star., 1943-03-05
Payroll TdxCut
Bill Approved
By Committee
Measure Would Save
District Employers
Million q Year
BY WILL p. KENNEDY.

The House District Committee
today ordered a favorable report
on the long-pending bill spon-
sored by Representative Niece
hee, Democrat, of Missississippi
tor reduction in the payroll tax
for unemployment compensa-
ton. The vote was IL In favor.
OF the bill and 4 voting present"
The present payroll tax is 2.7 per
cent which would be reduced under
the bill to y of ! per cent which
it is estimated would save employers
here at least 81 100000 a year.
The unemployment trust fund
from which benefits are paid has
accumulated to a surplus of s35 .OOO,-
600. The bill reported today pro-
poses to set up sliding scale for the
payroll tax.
The minimum rate Of one-half of
l per cent would prevail as long as
there Is a sufficient reserve in the
trust fund to meet anticipated bene-
MT payments and could be adjusted
upward in the event Of an emergency
situation.
Those Speaking for Bill.
Those who spoke in favor of the
bill at hearing in advance of the
executive session included John A.
Marshall, executive officer of the
District Unemployment Compensa-
ton Board; Harry S. Wender, pres
ldent OF the Federation of Citizens
Associations; three representatives
OF the Washington Board of Trade.
Frank Addison, chairman of a spe-
clal committee; Hugh H. Obear and
clarence Arata; A. Julian Brylawski,
president of the Washington The
ater Association and chairman of a
special committee of WASHINGTON
Taxpayers Association; Rufus s.
Lusk, president of the Washington
Taxpayers Association; Robert Will
son, representing the Washington
Restaurant Association; Charles
Rush, representing the Washington
Real Estate Board, and Mary
Wright Johnson, Federation OF
Women's Clubs.
Two persons opposed the measure.
lhey are Sidney Katz, representing
the Maryland and District CIO. and
Fred Walker AFL, speaking for the
Central Labor Union.
Labor Stand Explained.
Representative Russell. Democrat.
OF Texas asked the labor represent
atlves how it happened that organ
yea LABOR Is opposed to the bill when
tne employees contribute nothing.
tne entire tax being paid by the
employer and that the EMPLOYEES
DEMENT'S would be increased under
this measure.
Labor spokesman replied that tn.
oill places the union worker in a
olHerent status and that labor or
carnations have been opposed to
the principle Of experience ratings
oelng used in connection with un.
employment compensation benefits
1t was brought out that SO States
now have a similar law based on
experience ratings; that the District
DEMENT'S are now as large as those
IN any other State, and that under
the new law the rates will be even
better than those in some of the
States. Mr.. Obear testified that.
none OF the .38 States that has tried
the experience rating plan has ever
| dropped it.
The proposed increase is from sl8
10 $40 and the period of unemplov-
ment compensation is increased
from 10 to 20 weeks.
Three Other Bills Approved.
The committee also approved
three other bills, the most impor.
tant OF which grants an opportunity
during the present war emergency
Tor women to work 48 hours a week
in certain specified industries, utili-
ties, restaurants, printing plants,
laundries and stores. Employment
in each industry is based on the
particular need and application
must be made to the minimum
wage board. Women so EMPLOYED
would receive time and a half paw
for overtime.
The other bills would add the
(See PAYROLL TAX, Page A-6J