The Waterbury Democrat., 1934-12-31
HUGE RELIEF AND SOCIAL SECURITY PROGRAMS, INVOLVING BILLIONS,
 WILL FACE COMING CONGRESS
Jobless Insurance May Be Financed
 By Payroll Tax

 ployment. The eaten in this plan, as now described, is that if busi- ness according to the Federal Reserve Index doesn't average SUs per cent normal in 1895, the ta1 will be only per cent.
 That provision is likely to be bitterly contested, as there's no assurance or even any strong be- lief in the 90 per cent average.
 Each state would operate it's own insurance system, collecting the tax and administering it's own fund.
 Efforts among administration advisers for system in which employees would contribute appear to have been defeated. Opponents argued that employers would pass their share to consumers and thar labor shouldn't be soaked twice. LABOR OPPOSITION LIKELY
 Labor is expected to fight that reported part of the administra- ton program which would exempt many small employers and to in- sist that all employers of three or more workers except in case of farm, professional, and govern ment workers-come in.
 You may also expect some agi- tation in congress for federal contributions, with argument that a federal fund would help states subject by cyclical hazards.
 There's no telling what form the old age insurance measure may take, because of great popu- lar pressure for the radical Town. send plan with which the admin- istration may have to make some compromise.
 The administration proposal would almost certainly take the grant-aid form in the beginning. The federal government would contribute a third = or perhaps half - of the amount to be paid in pensions, and the states the balance. Congressman Keller of Illinois asks that the government contribute 75 or so per cent of the amount at first).
 MILLIONS WOULD BENEFIT
 There are 6,50O,O0O Americans beyond the age of 65 = the prob- able age limit to be fixed--and about half of them are dependent on relatives, charity, or relief. old age pensions would take many off relief rolls, which is one chief aim.
 Members of the presidents committee have figured that bene- ficiaries should receive at least $30 month, but initial federal aid pensions are likely not to ex- ceed s15 or $20
 The grant-aid measure would apply to persons already beyond the age limit in states which nlx dvy h1 on ui far~ which subsequently, adopt them. Twenty eight states now have old age pension laws, but few of the systems are functioning.
 Grant-aid would be replaced gradually by a contributory sys- tenn which would be set up in the same act. The contributory sys- tenn would call for small pay ments by persons under 65 and by their employers into an old age pension fund which would begin to function after it accu- mulated sufficient assets.
 TOWNSEND PLAN SLAPPED ..
 Now as for the plan sponsored by Dr Frank E. Townsend, who says he has 1900 Townsend clubs in AS states with more than 15,- 000,O00 members. eff those fig ures were proved correct ], would take back the assertion that the Townsend bill can't win.)
 Everybody over 60 would be paid q federal pension of $200 month and would have to spend 1t all and stop working. Town send says this eSould promptly wipe out the unemployed army of 10,0O0,000 because 100000 old people would turn over their jobs to others and 6,000.00O would get jobs through the stimulus of all that spending.
 There arc about 10000, 900 persons over 60, so, depending on how many accepted the pensions, the cost would run somewhere toward $2,000, 100000 a month.
 The money would be raised by Q sales tax which. Townsend says, should be from to 10 per cent after an initial couple of billions from the treasury to get the plan star V.
 Federal social security experts say the plan would cast about half the national income, require at least a 40 per cent tax. inflate prices chaotically. and be impos- siblc to operate and enforce. NEXT: Revamping NRA and what about labor?