Imperial Valley press., 1935-01-17
BY II. O. THOMPSON

Dheo EIesS Sta1t correspondent
WASHINGTON, Jan. 17.--Legis.
lation to carry out President Roose.
velt's program of security for aged
and insurance payments for unem-
ployed was introduced in congress.
today.
Bills embodying recommendations
OF the Presidents S committee on eco
nomic security were presented by
Sen. Robert f. Wagner, CDem. }
New York, and Rep. David j. Lewis
iDem9 Maryland.
They faced Thorough study by
the senate finance committee and
the house ways and means commit
tee, with prospect of several changes
before being reported by the COM
mittees and enacted into law by the
house and senate.
The bills provide:
l. Three kinds of old-age pensions.
which cover both the man who
works with his hands and the
''white-collar" office worker.
2. Unemployment insurance un-
Ger federal subsidy to the states.
the exact form and manner of the
insurance payments to be deter
mined by the states.
3. Federal subsidies for maternal
and child health, care of crippled
children. and promotion of public
health.
The old-age pension provisions
are split into several categorieS.
They are aimed at aiding all Amer
leans when, no matter what their
station in life, they reach the age of
65.
For those who reach 65 without
money. there will be pension up to
$50 per month. This can be put
into effect within the year.
As the system works out those
who reach SIS after being employed
steadily for the years will receive
pensions up to 500 per month.
For those not included in the clas-
sifications eligible for pensions of
either type there will be the oppor-
tunity to purchase federal annuities
which, returning to them in their old
age, will enable them to be self-sup-
porting in the declining years of
their lives.
The Wagner-Lewis legislation
would not inaugurate any such
program as the Townsend plan OF
paying flat rate of $500 per month
TO the aged. 1t has a foundation of
sound financing which economists
say is lacking in the Townsend plan
and other similar suggestions for af-
fluence in later years.
Because it seeks a method of old
age pension and unemployment in
surance which would not upset the
nations financial system. the .Wag-
ner-Lewis plan is necessarily COM
plicated one.
Two Types Offered
Two types of taxes are proposed.
One is a payroll tax to build up a
fund for the payment of old-age
pensions. Workers will contribute to
this just as much as their employ
ers, but they will have the satisfac-
ton of knowing that each addi-
tional year they work will mean just
that much more income at the age
of IS.
Another payroll tax is proposed to
provide for unemployment insur-
ance. A federal subsidy would be
provided so that firms paying to
state unemployment insurance
funds would not be subject to fed
eral taxes.
The exact amount of insurance !
an unemployed worker would re-
ceive would depend upon the action |
taken in his own state. The plan is !
for payments up to SIS per week. !
The social security program calls !
for close cooperation between the
states and the federal government |
because much Of the machinery will
be decentralized and managed by
the states.
The legislation proposes an appro-
priation of s5O,0oo,ooo for the fiscal
year ending June 80, 1886 to start
off the old-age pension system. This