Evening star., 1935-02-06
Nominated for Motion Picture and Sciences Awards Id
PENSION INCREASE
MOVE ATTACKED
Costs Cited to Check Foes
of Limits Set in Pres
ent Bill.
By the Associated Press.
A backfire against the Townsenders

By the Associated Press.
A backfire against the Townsenders
and other advocates of more liberal
old-age pensions was kindled today by
Democratic leaders of the House Ways
and Means Committee.
They gathered figures to show taxes
States will have TO bear If the ad-
ministration's social security bill Is
passed in its present form.
Publication Of the figures, the group
hopes, will cause many voters to pro-
test to their Congressman against
granting benefits larger than those
provided in the RooseVelt-backed
measure.
Yesterday Secretary of the Treasury
Morgenthau came forward with pro-
posal to reduce the Roosevelt bills
scope.
Would Ban 100000.
He said Upward of 5000, 900 farmers,
domestic servants and tranSientS
should not get compulsory old-age
pensions because collecting taxes to
finance their pensions would be ter
rife task. Morgenthau took issue with
Secretary of Labor Perkins and Presi-
dent Roosevelt's Economic Security
Committee in this stand and the Pres
ident left it up to Congress to decide
which was right.
Another Morgenthau recommends
tion which met no opposition from
the Security Committee was that pro-
posed pay roll taxes for compulsory
pensions be stepped up to keep the
Government from running far into
debt.
The statistics on State costs are
being calculated on many different
bases-to show what the cost would
be for $40 or $50 month pensions
to persons over go, 65 and 10.
Would Double Costs.
In one Southern State, the calcula-
tionS showed that an old-age pension
Of $50 a month-half furnished by
the State. half by the Federal Gov
ernment-to persons over go would
cost the State more than it now
spends for all of its other activities.
That figure took into account the
estimate by DR.. Edwin E. Witte, ex-
ecutive director Of the Economic Sc
curity Committee, that at least one
third Of those eligible for pensions
would not apply.
The congressional committees last
night had only two unanimously en-
dorSed suggestions before them:
l. That the function OF issuing and
selling voluntary annuity certificates
be transferred from the new Social
Insurance Board to the Treasury to
eliminate the onus of charity; and
2. That proposed taxes for the COM
pulsory old-age pensions be stepped up
10 keep the Government from going
too far into the red on 'unearned" an
nuitieS.
No suggested changes here offered
for other sections of the bill, but these
two were praised by Democratic men,
bers of the Ways and Means Commit
tee.
Doughton Lauds Statement.
Chairman Doughton. Democrat. Of
North Carolina termed Secretary Nor
genthaus statement as fine; Repre-
sentative Cooper, Democrat, of Ten
nessee used similar language and Rep
resentatuve Vinson, Democrat, of Ken
lucky said I'm for them" Repub-
licans reserved comment.
As 1t now stands the bill provides
two forms Of old-age pensions. one is
the compulsory for employees making
less than $4,000 year, and the other
is voluntary, for those making more
than that amount and getting back
whatever they choose 10 pay in.
For the compulsory pension, both
employe and employer are taxed a
percentage of their pay roll and earn
ings. The money is to be kept in the
Treasury and paid back to the worker
when he reaches 65. The Federal
Government could not advance more
than SIS month for these pensions.
Would Increase Tax.
Workers who now are close to IS
would not. when they reach that age,
have contributed enough to pay their
pensions. The Government will do
nate the balance-or the "unearned
annuity"
Estimating that at present the
Federal Governments cost to meet
"unearned annuities" would be ST.
500000000 year by 1880, Morgen-
thau proposed that the compulsory
tax start at per cent, instead OF /,
as the bill now provides, and increase
to per cent in the thirteenth year
instead of per cent in the twenty
first year.