Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-12
SOCIAL SECURITY
|. NEXT FOR SENATE
Hastings WIN Move to
Strike Out Compulsory
Pension Plan.
By j. A. o.LEARY.

The Senate Ia preparing to tackle
one Of the main issues Of the ses.
sion--the social security bill--as soon
as. the NJ n. A. resolution Is dis
posed Of, probably by tomorrow. II .
vote Ia reached on N. r. A. late to-
day the social security program would
be made the unfinished business.
Most Of the debate Ia expected 10
reyolve around the compulsory old
age benefit system, to be bnilt up by
joint tax on employees and employ
ers, and the unemployment insurance
plan, involving O. tax on employers.
Senator Hastings, Republican, Of
Delaware made known today he 10
preparing to move to strike out these
two features OF. the bill and the two
taxing sections that GO with them.
He said he has reached the definite
conclusion that, even II practical, they
are unconstitutional"
On the other hand, Chairman Har-
rison Of the Finance Committee, in
charge OF the bin, is confident the
Senate viii pass the measure substan-
tally in its present form, or at least
with minor changes.
An effort TO eliminate the COM
pulsory old-age benefit and unemploy-
ment insurance features was made in
committee several weeks ago and
failed.
Hastings' Objections.
Senator Hastings explained today
that he il not opposed to unemploy-
ment insurance, or to making proyi-
sion for 1t, but objects TO forcing 1t
on the States. The bill would levy q
pay roll tax on employers OF four or
more persons, starting at per cent
In 1895 and reaching q maximum Of
3 per cent In 1888, with q provision
that q taxpayer may deduct contri-
buttons made to an unemployment in
surance system In his State, up to 30
per cent Of the tax.
There are two separate old-age PEN
sion features In the bill. The first,
toward which there are no signs Of
opposition, would consist Of direct
Federal grants to aid those States
that pay pensions to aged persons.
The Federal Government would pay
SIS toward q monthly pension of $50.
The other old-age benefit section ID
intended to build up q contributory
retirement plan for persons who are
still at work, by providing for an
mploye-empl0yer tax. This Is the old
age section Senator Hastings is plan.
ming to oppose. Retirement annuities
under this section would start In 1912.
Amendments probably will be offered
while the bill Is before the Senate
seeking to allow industries to continue
to operate their own retirement and
welfare systems. II those systems meet
the standards laid down for the
Federal plan.
Wisconsin Plan.
In the unemployment insurance
section Of the bill. the Finance Com
mittee made an amendment allowing
States the option Of including In their
State laws, II they so desire. the So
called Wisconsin plan Of keeping each
employers unemployment reserve in q
separate account, as distinguished
from the Statewide pool system, and
provisions TO encourage employers to
stabilize employment.
The bill also contains several other
sections providing for Federal aid to
the States for variety Of social well
fare purposes. such as home care for
dependent children, public health and
care OF crippled children.
An important Senate Committee
amendment provides Federal aid to
those States that have pensions for
the blind.
Another Senate amendment would
allow individual citizens TO purchase
from the Treasury old-age annuity
insurance, but there Is understood to
be some opposition developing In the
Senate to this provision.