Evening star., 1935-12-15

AWAIT ACTION BY STATES
Congress Also to Pass Appropriations
Foiled by Longs Filibuster-BOard
and Welfare Officials to Confer.

1895: $400 under the per cent tax
in 1887 and 5000 under the per cent
tax Of 1888 and thenceforth. If your
pay roll is 100000 a year you will
pay in the respective order above
81 900 in 1896; $4,000 in 1887 and
$4,000 a year thereafter. II your pay
roll is $l,000,000 annually you will
pay. respectively $4,000, $4,000 and
100000.
Minimum Figures.
1t is understood that these figures
are minimum. If the State tax for
unemployment compensation exceeds
90 per cent Of the Federal tax (the
off-set figure). the total tax rate would
be greater than the above figures.
Reserve funds of each State are to
be deposited as a trust fund with
the United States Treasury. The State
may make Withdrawals if necessary to
meet unemployment compensation
claims. The purpose Of this fund is
to prevent deflationary effects which
might result at the outset of a de-
preston if each State invested its own
44lC 10 W lllNCSI 4uI1uS
not needed for current Withdrawals in
Understanding obligations guaran-
teed by the Federal Government.
The Federal pay roll tax on EN-.
ployers of eight or more wage earners
is to be collected by the Bureau of
Internal Revenue, returns to be made
not later than January 81 following
the close of the calendar year. II
payment is delayed the employer
must pay an interest rate of one
half of per cent month until the
tax is paid
No State legislation is necessary for
the old-age pension part of the social
security program. Taxes are levied and
the benefit payments made therefrom
solely by the Federal Government.
However, in this case both the EN-.
ployer and the employe are taxed.
Contributions will be made from the
pay rolls and directly from the wages
of individual workers. These funds
will be put into a reserve account in
the United States Treasury. Both em-
ployer and employe will pay at the
rate of l per cent each, beginning in
1887. and increasing one-half Of per
cent every three years until maxi
mum tax Of per cent is reached in
1949. Thereafter the tax rate will re-
main at 3 per cent.
Payment for Life.
When the worker reaches 65 years
of age he is entitled to a monthly pay.
ment from these funds for the re-
mainder Of his life. First benefits will
be paid in 1912. Payments will range
from $40 to a maximum of S85 a
month. based upon the number Of
years the recipient has made contri-
buttons and upon his total wages dur
ing this period.
The combined employer employe
tax for old-age pensions in the ordi-
nary business enterprise thus would
range from 5000 in 1887 to $1,000 in
l949 on a pay roll of $4,000. and
from $50 900 in 1897 to 100000 in
1949 on a pay roll of S1,000,000. It is
estimated that the United States from
these combined taxes will receive
S278, 300 900 in 1887 and 81 ,877 .200, 900
by 1850. The Commissioner of Internal
Revenue may issue stamps and cou-
pons for collection and payment Of
these taxes through the post Offices.
All workers reaching IS after Janu-
airy /, 1912, are eligible with the same
general exceptions as those for unem-
ployment benefits.
Corporation officers and high-sal-
aried employees also will come under
the eligibles for old-age benefits.
However, the individual tax will apply
only to the first SO 900 in wages dur
ing the calendar year, whatever the
total salary may be. The net total Of
employees in the United States eligible
for old-age pension benefits would be
nearly the same as that given for un-
employment insurance.
The beneficiary must have been
paid wages of at least $4,000 after
December 81. 1886, to be eligible, and
he must have been employed. at least
part time, for five calendar years after
that date to be qualified by January
/, 1912. Qualified individuals en-
ployed after that date cannot receive
their benefits until they retire. The
monthly amount will be based on per-
centages of the total wages paid after
December 81, 1885, ranging from one
half of per cent of total wages up to
| SO, 900; one-twelfth of l per cent Of
wages between $4,000 and s45, 900, and
one twenty-fourth of l per cent Of
wages above 5000.
Thus, if you are a worker receiving
an average salary of $50 a month and
had been employed five years after
December 81. 1886, you would get
SIS a month benefit. This figure rises
in a graduated scale according to the
longer period of employment. until
that period of employment reaches 40
years, when, if you retire, you will be
eligible to receive $32.50 a month
from the Government. If your salary
is $3.50 benefit for five years employ
ment after the deadline, up to $81.25
a month for 40 years employment.
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