The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-17

lew Deal entered its second
ing men, women and children
from some of the hazards and
vicissitudes of life.
The message proposed that
the pensions and benefits be
financed through taxes on pay rolls
and wages.
Legislation has been prepared and
was to be introduced this afternoon
to put Mr.. RooSevelt's program into
effect.
simultaneously with the message
were made public the recommended
lions of the Presidents Committee
on Economic Security. The COM
mittee urged immediate action to
establish:
l. A uniform pay roll tax on en-
ployers to whom the act would be
applicable.
2. Legislation creating machinery
for Federal participation in admin
istration of unemployment COM
pensation.
Three Principles PrOpOunded
The message propounded three
general principles which should
guide the nation in undertaking to
provide economic security:
l. The system should be self
sustaining rather than a burden
upon the proceeds of general taxa
ton.
2. Except for old-agen insurance,
actual management should be left
to the states subject to federal
supervision to assure proper stand
ards.
3. All funds should be under fed
eral control.
"This plan for economic security
is at once a measure Of prevention
and a method of alienation" Mr..
Roosevelt said.
1.-The establishment of sound
means toward a greater future eco
nomic security for the American
people is dictated by a prudent con-
sideration of the hazards involved
in our national life.
Backs Plan Fully
mo one can guarantee this coun-
try against the dangers of future de-
pressionS, but we can reduce these
dangers.
1--WE pay now for the dreadful
consequences of economic insecurity
and dearly. This plan presents a
more equitable and infinitely less
expensive means of meeting these
costs. We can not afford to neglect
the plain duty before us. strongly
recommend action to attain the OBJ
jectives sought in this report.
The committee recommended 3
per cent pay roll tax to be effective
Jan. l, 1886, but said states could
assess it against employers alone,
or against employers and employees
with or without contributions from
the state.
If general economic recovery in
the first two years beginning next
Jan. l is not satisfactory, the COM
mittee suggested lower tax rate
but said it should attain 3 per cent
by 1888.
Employers who had employed
four or more persons during any
13-week period of the taxable year
would be liable to the assessment.
The committee opposed exemptions
for any specified industries, but
recommended a separate nationally
administered system of unemploy-
ment compensation for railroad and
maritime workers.
so Per Cent Credit Planned
Employers who paid unemploy-
ment compensation contributions TO
state authorities under state law
would be given credit against the
Federal tax up to 80 per cent.
On the basis of per cent con-
tributions, the committee believed
the maximum benefit period could
not exceed Is weeks and should be
reduced to Is. 1t said workers long
employed without drawing COM
pensation might be given an addi-
tional week for each six months of
employment during which they had
not received benefits. The commit
tee recommended a waiting period
of four weeks between loss of a job
and first payment of compensation
benefits.
The Federal Government would
receive and invest all social insur-
arce funds. A social insurance
board would be created within the
Department of Labor to admins
ter the Federal unemployment COM
pensation act and part Of the old
age security system.
Propose Life Annuities
To supplement the latter, tire
committee proposed that the Gov
eminent sell to persons with an
nual incomes Of $4,000 or less de-
ferred life annuities on a cost basis.
These would guarantee the pur-
chaser a definite lifetime income,
Turn to Page Tenl