The Waterbury Democrat., 1935-06-20
Social Security Is
 Close To Enactment
tcontinued from Page i)


 position. Republicans voting mo" were Austin of Vermont, Hale of Maine, Metcalf of Rhode Island. Townsend of Delaware and Hast ings of Delaware.
 Those Supporting Bill
 Voting for the bill were IA re- publicans, one progressive, one farmer-lnborite and 60 democrats.
 It's old-age pension program and unemployment insurance system will reach an estimated 25,000,000 persons. It includes pensions for the blind, maternity care, crippled children, under privileged children, and protection for general health.
 The administration, in guiding the bill through both houses, suf- fered defeat only in one major amendment. That was a proposal by Sen. Bennett c. Clark, d., Mo.y that private pension systems al- ready in effect in industry be ex- empt from provisions of the act.
 The amendment was adopted over vigorous protest of Sen. Pat Harrison, d., Miss, in charge of the bill, by a vote of 51 to S5. Senate leaders plan to seek It's removal in conference.
 A half dozen minor amendments, chiefly aimed at strengthening con. stitutionality of the measure, were adopted.
 Borab Amendment Lost
 An amendment by Sen. William D. Borah, r., Idaho, which would have taken care of persons over 65 in statess not having relief for them was likewise defeated SO to IS.
 A broadly liberaiizing amend ment, put forward by Sen. Rich- ard E. Russell, IT,, d., Ga., allow ing federal payment of $15 Q month pension to persons over 66 In states now having their own pension plan, was adopted. Pay- ments would be made over q two. year period of grace, pending on. actment of state laws.
 Major Features of Bill
 Washington, June 1S.--(UP)-- Here are major features of the social security legislation by which President Roosevelt hopes to estab- fish a permanent program of "as- sistance to American citizens In meeting some of the major econ. omic hazards of life"--
 Compulsory Old-Age Pension
 System
 Beginning in 1887, all employees in the country, except casual and agricultural labor, private domes- tic servants, workers for the fed cral and state governments, and for religious, scientific, charitable, lit- erary, or educational organizations, will pay q federal tax of one per cent on their wages up to sS,0o0 per year.
 The tax will be increased one- half per cent each three years, un- til 1t reaches a maximum of three per cent for 1949 and thereafter. Employers will pay a similar levy at the same rates, based on the tax able pay of each employe. It is estimated that these taxes will pro- vide sufficient funds to pay for old age annuities.
 Employees will be eligible for an- nuities when they reach 65, and if they have paid tax on total wages of $2,000 or more earned during five or more years after 1936. They must retire at 65 to obtain the benefits.
 A person who gives up his job at 65, and who. had been paid an average salary of S100 per month, would receive a pension of $l7.b0 each month if he had been taxed under this system for five years; S22.5O if he had contributed 10 years; $s2.50 if 20 years; $42.5O if 30 years; and $51.25 if 40 years. Immediate Federal State Pensions
 The federal government agrees to allot $49,750,000 for 1886, and as much as may be needed annual ly thereafter, to states for old age pension payments to those who cannot obtain the annuities and to help care for the aged until the compulsory system gradually goes into operation. It is estimated that these pensions would average $50 per month, with administration of program left to the states.
 Unemployment Insurance
 An excise tax is levied upon em- pIoyers of four or more persons, effective for 1888 and payable first in January, 1887, to establish an unemployment insurance fund. For the first year, this levy is one per cent of the employers payroll. It is two per cent In the second year and three per cent in the third year and subsequent years. Against this tax, the employer may credit any amount, up to 90 per cent. he pays for state unemployment com penaafion.
 The basic idea of the federal tax. with credits permitted against ii for payments 10 states, is 10 enc