The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-17
SHOWDOWN ON
SECURITY BILL
DUE IN HOUSE
Clark Amendment Is Only
Controversial Clause
Left in Act.
BIZ United Press

By United Press
WASHINGTON, July 1.-THE
Administration social security pro-
gram, embracing old-age pensions,
unemployment insurance and child
welfare features, went before the
House today for showdown on the
one controversial provision.
Senate and House conferees have
agreed on all disputed parts of the
measure except the Senate's Clark
amendment relating to private PEN
sion plans. The Administration
hoped for a House vote today to
eliminate this from the measure,
thereby preserving the program in
approximately it's original form.
The Clark amendment would per-
nit employers to retain their own
systems of old-age pensions pro-
vided they received Federal APPROX
al. Such pension systems would
escape Federal tax.
The Administration believes the
Clark amendment would enable en-
pIoyers to discriminate against
elderly employees by adopting pen
sion plans which might be subject
to manipulation ana avoidance OF
the New Deal detectives of provid-
ing security in workers advanced
years.
When the controversy over the
Clark amendment is settled the
measure will be ready for submission
/ to the White House. The bill was
approved two months ago by the
House and a month ago by the Sen
ate.
The bill as it emerged from the
conference.-the form expected to
become laW-provides:
COMPULSORY OLD-AGE PEN
SION SYSTEM
All employees except casual and
agricultural labor, domestic scerv-
ants, Federal and state workers and
those employed for religious, SCI
entific, charitable, literary or edu-
cational organizations, will begin in
1887 to pay a Federal tax Of l per
cent on their wages up to $4,000 a
year.
This tax will be increased grad
ually until it reaches 3 per cent for
1949 and thereafter. Employers
match that tax.
Employees will be eligible for old
age annuitieS at the age of IS and
must relinquish steady employment
at that age to receive them. The
annuities would range from $3.50 a
month for a worker with an average
monthly salary of 500 who had
paid the tax for five years to $51.25
for a worker with the same average
who had been taxed for 40 years.
IMMEDIATE FEDERAL STATE
PENSIONS
The Federal government allots
$40, 100000 for 1896 to begin sys-
tenn Of old-age payments to those
who have not had time to earn the
old-age annuities.
States which have constitutional
barriers preventing them from
matching Federal grants would be
permitted to operate through their
cities and counties, moneys appro-
priated in that way being given the
status of state participation. 4?
1t has been estimated these old
age pensions would average $50 a
month.
UNEMPLOYMENT INSURANCE
An excise tax is levied upon en-
ployers of eight or more persons
who have been employed for 20
weeks or more, effective for 1886
and payable first in January, 1887.
The tax begins at l per cent of the
employers pay roll. It increases
each year, but employers co-operat-
ing in state insurance plans would
escape the Federal tax almost en-
tirely.
A Federal appropriation of $4,000
100000 is provided for 1886, and
SAC, 100000 is provided annually
thereafter to aid states in meeting
the costs of unemployment insur-
ance programs.
ADMINISTRATION
Administration of the program
will be through an independent
agency, the Social Security Board.
The proposal to have it operated
through the Labor Department was
rejected in conference.
BENEFITS FOR THE BLIND
The Senate amendment authoriz-
ing Federal grants to match state
pensions for the blind was adopted
but the requirement that persons be
permanently blind" was deleted, vo-