Quote – George C. Lucas, Executive Secretary, National Publishers Association, Testimony, House Committee on Ways and Means.

…in regard to the ultimate consequence of this legislation, that is leaving aside the effect that might be produced this year or next year, on pay rolls, we wish to point out the added incentive it creates for the more rapid introduction of labor-saving machinery for the definite purpose of reducing the total taxable pay roll and thus add to the unemployment....Further there is always a maximum labor cost that any industry can meet and there will be a definite increased tendency for employers to consider this tax as a part of the wages of their employees and keep the direct wage paid as low as possible to reduce such wage by the size of the tax itself; I am indicating that only as a natural business tendency.

George C. Lucas, Executive Secretary, National Publishers Association, pgs 395-398, esp. , in “Unemployment Insurance,” Hearings before the House Committee on Ways and Means, Mar. 21-24, 26-30, 1934.

Wednesday, March 21, 1934
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