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Show Enterprise Review, June 9, 1976 Workshop to Study Financial Growth Opportunity Unemployment Benefits Reduce Work Incentive For many individuals there is little incentive to seek new employment during the period for which they receive unemployment benefits once they have qualified for them. A report by the Utah Foundation notes that the combination of unemployment benefits and tax savings re places most, if not all, of any wage loss resulting from unemployment for many individuals. Unemployment benefits, which are designed to replace about 50 percent of the wages lost in a period of unemployment, are not subject to federal and state income taxes and Federal Social Security (F.I.C.A.) taxes. In an illustration given in the report, 76 percent of the wage loss resulting from a k period of unemployment by a married woman who had earned $115 a week is made up by unemployment benefits and tax savings. k After the initial ten-wee- one-wee- waiting period, unemploy- ment benefits make up 87 percent of the wage loss. Thus, the added income that could be received by actually working in the given illustration is only $13 a week, or about 32 12 cents per hour. Currently, the unemployment benefit amount in Utah is approximately equal to 50 percent of the unemployed prior wage, subject to an overall maximum of $101 In July, this per week. maximum benefit amount will be raised to $1 10 per week. At present time, it is possible an individual in Utah to receive benefits for a period of 52 weeks (one full year). The Foundation findings for Utah are confirmed by two separate national studies were reported to the 1975 Annual Meeting of the Industrial Relations Research Association held in Dallas, Texas on December 28-31975. One study concluded that unemployment benefits cause workers to hold out for better jobs and may be used to by younger workers subsidize nonmarket activities than job search. The second study observ- ed that for those who are already unemployed, it (un- employment insurance) great- ly reduces and almost elimin- ates the cost of increasing the period of unemployment. Asa result, the study concluded that unemployment compen- is likely to increase nearly all source of umem- ployment; seasonal and cycli- cal variations in the demand for labor, weak labor force 0, Terracor Begins Second Solar Home Construction has begun on d demonstrathe home tion being built by Terracor at its Stansbury Park solar-heate- development. The home will be in the framing stage within three weeks and is scheduled for completion by late autumn, according to Jan Haarbrink, Terracor Construction Direc- tor. While construction and design costs are being provided by Commercial Security Bank Fourteen different agencies in the morning with summary and organizations will sponsor reports presented in the afterattachment, and unnecessarily the first of two conferences on noon. Participants will receive long durations of unemploy-worker- s Utahs Financial and Growth summary reports during the ment. 15 at the .summer, and another conferJune Opportunities Utah Foundation analysts c ence will be held in SeptemTravelodge. hasten to point out that the Professionals from the ber. report is not intended as a minAbout 100 people have regicriticism of those who admin-th- e manufacturing, banking, ister the unemployment insur-fo- r ing, and petroleum industries stered for the conference so will meet to discuss their far. The University of Utah ance program. Present policy of the Utah Department of major problems and possible Bureau of Community Develsolutions. opment organizing Employment Security requires The conference will feature the conference, expects 200 to that each claimant must make an active search for work in workshops among the groups attend. order to be eligible for bene-whic- h Tri-Ar- (581-6491- ), fits. They note, however, that lack of individual incentives in the present system make it very difficult to enforce this A major general policy. reason, they say, for the PRIME Downtown Location problem is that the system of taxation in Utah and the United States has changed dramatically since unemploy-rathe- r ment insurance programs were first established forty years ago. In addition, the length of time that benefits may be received has been considerably extended. As a result, when the tax savings for not working are added to e the unemployment benefits received, little incen-satio- n five remains for many of the unemployed to seek new jobs during the period for which they are eligible for benefits, 16,000 sq ft. bldg. Fantastic r- As is or remodel to suit parking. tennant. 250 East 2nd South. tax-fre- off-stre- et 359-591- 3 Muzz or Blair Malouf. - 5 freight bili of Tooele and Terracor, the cost of the solar heating system is. being underwritten by the Department of Housing and Urban Development, .which awarded a $15,000 grant to Terracor as part of a nationwide program to stimulate various areas of energy research, including solar heating. The solar home at Stansbury Park is the second such home to be built by Salt Lake d Terracor. v' YUK d City-base- Garn Critical of Credit Procedures continued from page 2b system under which creditors would be required to make a certain number of preferential loans to favored- groups without analyzing the likelihood of Application of repayment. these affirmative action programs would deny credit grantors the right to use appropriate variables to determine the probability that the applicant will repay the indebtedness. This wrouId result in the good credit risk paying for the poor credit risk and the less deserving receiving credit ahead of the individual with an established record of good paying habits, Garn said. The hearings failed to - produce hard evidence that discrimination in mortgage lending is pervasive, he said. "Broad assertions are made in the Report that discrimination in mortgage lending is widespread. Although these as- sertions echo statements made by several witnesses, no reliable data was presented at the hearings to verify these statements. I dont doubt that discrimination in mortgage lending exists, but the hearings failed to establish that it is widespread and would justify the massive intervention in the market place advocated by the Report," the Senator added. ITS PROBABLY lO TO 20 PERCENT TOO HIGH If we cant save you money on your shipping costs- -a lot of money-- we wont charge you a thing. We can' afford to make this guarantee because we know that you are probably being overcharged. Freight rates are enormously complex (over 20,000 changes just last month) and freight companies often overcharge shippers unknowingly. NJS Associates are specialists, distribution consultants. We have saved some of our clients over $100,000 annually in distribution costs. 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