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h - Jobs Better Than Unemployment Pay - President...
Jobs Better Than Unemployment Pay - President Eisenhower conferred .with eight governors tills week on his proposal to provide federal money for unemployed Workers who have used up their jobless pay under the federal-state unemployment compensation program. , The President has not made it clear whether he;^viU,.propQse federal grants or loans to the states. Originally he spoke of grants, gifts that didn't need to be repaid. Opponents promptly called such, a program a; government dole. Administration spokesmen now seem to be talking in terms of loans or "grants" which need not be repaid. ASSOCIATED PRESS Writer James Marlow reports that all but about six states have sufficient funds in their own UC accounts to extend the period for drawing jobless compensation. Thus although only six states actually need federal assistance at present, some are slow 'to use their own xuilds for this purpose. No doubt state legislative action would be needed! ; About 43 million American workers are covered by jobless insurance—about two out of every three in the nation's labor force of 67 million. Not^ covered are farm workers, some government employes, domestics and employes of non-profit institutions. -UNEMPLOYMENT compensation is not a-dole. The money comes 4 entirely from a tax on employers,:based on their" payrolls, aiijd.uva few states from a tax on workers, too. Programs, benefits and taxes vary from state to state. 'Thefederal'government puts no money Intq the UC fund aind neither do the states. The; money collected from employers ; goes Into a fund administered by the federal government, however. Each state has its own account in this fund and draws from it as needs require. . . : ";T" The fund now hag about 8% billion dollar* •'. •'•'• ^"V • '. •.•--..-•. -j;--: -•'••• - •.•.••'".*:>.. ••'-•;. : ...:•«{'.• .... ;:.-, v ,,.v _In recession years more money is ; taken out than is put in.. In 1954, for instance, a total of $lil36,(K)6,000 was collected arid just over two billion dollars paid_dut Since last September, more than one billion dollars of the fund has been distributed. When SUil X job to Be Done Lake City ; has a riew-.Police iCourt prosecutor. Melvin H. Morris has been "by ; Itnance Commissioner Theodore^ i Geurts to succeed Roscoe VL Irvine, jned the; p^£ Tuesday. ^vU'- -^ ^ It should be emphasized, however^ that tlijs action 1 does not assurecorrection v of Eplice Court problems which" have been called recently to public attention. \J X There was no evidence Mr. Irvine was rfsponsibie-fpr: the court's shortcomings. Indeed, he had no control over many of the functions of the court and some of the situ, ations which appeared to be causing difficulty...^ • :. v --. : .- :..-•. prolonged unemployment forces a state to exhaust its account, the federal government can lend it money under the present law. • Currently about 5,200,000 persons are unemployed in the U.S. and over three million of them are drawing unemployment compensation. BENEFIT PAYMENTS range from $3 a week in Mississippi to $41 in Wyoming and $45 in Alaska. The average payment is $30 a week and a few states give additional amounts to jobless men with dependents. In Utah, under an amendment passed by the 1955 legislature, the benefit payments equal one half of the average weekly wage ' in the state. During.fiscal 1957 the average weekly v/age in the state was $74. The pres- enent UC benefit payment is $37 a week. X The. length of time a jobless person can draw jobless compensation varies, too t Thirty-one states have a maximum of 26 . weeks. Pennsylvania is the highest with 30. Florida has 16 weeks. Utah law provides between 15 and 26 weeks, depending upon the ratio of the worker's total wages during a base year to wages earned by the worker during the high quarter. Thus seasonal workers do not fare as well as full-time employes. THE TAX on .employes started out to be 3 per cent on the first $3,000 of each- covered worker's pay. Many states lowered that tax for various-reasons arid the tax has been running at a national average of abqut 1.2 per cent on the first $3,000 of payroll, though "in some states and on some industries the tax going into stats funds is as high as 12.7 per cent. .Another three- tenths ofJLjper cent goes to the federal government 16 cover the cost of administering the fund. ..'_.. '••"'. ' The Utah tax is complex, based oiran experience rating, system. The rate is determined by three'factors —-annual payroll 'stability, ~ quarterly payroll stability and.age of the firm. Firms .failing to qualify for reduced rates under the experience rating pay a standard tax of 2.7 per cent of their covered payrolls. WE AGREE with Utah's Governor _ Clyde that jobs, are the solution to current' economic difficulties and that public works programs,; supplementing "private employment, are more desirable than jobless payments. /; ':,:.. : .^; % .. .-. '.:.," - In cases where ; jobs cannot be provided ^before the. unemployment. compensation 'period expires arid ..funds~ are^xhausted V some governmental ^action is indicated, of coursed It may.- be'.''that welfare agencies would have to act in some cases. . The problem at present seems to rest more with the.states than the federal government. Certainly! a federal "dole" is not called for particularly when some 42 states still have funds for unemployment compen- . sation. - -

Clipped from
  1. The Salt Lake Tribune,
  2. 21 Mar 1958, Fri,
  3. Page 43

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