The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1935-01-12
Social Insurance First Responsibility
OF Government, Miss Vdn KIeeck Declares
Asserts That Wealthy
Must Bear Costs of
Jobless Benefits

laws which permit deductions OF
losses from total income have been
clearly shown in recent investiga-
tons to have exempted some Of NE
largest receivers of income from
payment Of any income tax at all.
It seems obvious that proper revi-
sion of the income tax law would
produce increased revenue, whicn
should be used to increase pur-
chasing power through unemploy-
ment. insurance. But there are
other sources to be examined. One
Of them. already put forward by adj
voestes Of the Workers Bill, though
not included in the bill Itself. is to
curtail expenditures for war. Those
who complain Of high taxes would
do we'll to note the high proportion
of those taxes which 60 for wars.
past and future. For example, in
the book entitled Recent Social
Trends" giving the report OF the
Presidents Research Committee on
Social Trends appointed by Ptesi-
dent Hoover, it is estimated CTable
6, page l346) that of total tax col
lections, federal, state and local, in
1880, 25.8 per cent was expended for
war, as compared with Gil per cent
for education Thus in a very direct
sense the struggle against war is a
struggle for economic security by
saving the nations income for ax-
penditures in the public interest.
not to mention the devastating ef-
fects OF war upon the productive
forces of the nation and hence the
undermining of standards of living
and Of economic security, resulting
from the economic dislocations
Characteristic Of wars.
Postponing for a moment this dis
cussion Of how to increase produce
tivity, it may be said in answer to
DR.. Rubinow's contention that il
the other steps proposed, namely, 4
revised and increased income tax
and inheritance tax, the use of war
funds an d throughgoing public
works and housing program to re-
duce unemployment should prove
insufficient, and if initial expendi-
lures should not result in much re-
employment and consequent reduc-
ton of the cost of UNEMPLOYMENT
insurance, there would remain addi-
tional taxes upon industry, such, for
example, as have been proposed in
the Wagner-Lewis Bill. This would
be tax based upon the size of the
payroll. That is, it would be an
addition to payrolls for the purpose
of continuity of income for the un-
employed. This Is not advocated
in the Workers Bill, and the obtec-
ton to it is that it is charge upon
production which is readily trans
ferable to the workers in increased
prices for consumers goods, while at
the same time it serves as a down
drag upon the wage scale, since this
kind Of tax is counted in the labor
costs of corporation. Nevertheless
it has been put forward as the sole
source of funds for unemployment
insurance Of a limited kind. And
as last resort it is reasonable to
expect that 1t would make tip the
deficit remaining after other sources
might have proved insufficient.
But the demand for economic
security, which puts forward as its
first point the necessity for unem-
ployment and social insurance,
must also require such policies on
the part of government as shall in
crease productivity as the only
sound basis for increased en-
ployment. Many of the policies of
the present administration are in
the opposite direction, tending to-
ward restricted production, destruc-
ton of crops, and the like, with
the immediate purpose of maintain
ing profits by raising prices and
by making government funds avail
able to sustain interest on bonds
and property returns. OF course a
program of economic security de-
f1ahds the setting free of the pro-
ductive capacity of the nation, and
therefore the first steps in advo-
cscy Of the Workers Bill must be
followed through one by one to the
solving of problems which emerge
as . movement Of this kind sd-
vsnces.
The Need for operative Action
1t is believed that no valid oppo-
sition can exist to the main pur-
poses represented in this National
Congress for Unemployment and
Social Insurance, namely, the de-
mand for social economic security
for all workers as the foundation
for social economic security for the
livelihood Of the American people,
But this Is no paper program to be
worked out and presented to the
Congress of the United States as
children must write letters to Santa
Claus. The American people, and
the workers, have been
drawing together during these years
of insecurity and distress, and the
basis is thereby laid for united ac-
ton in which workers of the pro-
LESSONS shall contribute out of
their technical knowledge to make
this movement sound for the de-
yelopment of the United States, and
workers in all industries and farm
ers should test in their own expert
ence the conclusions Of technicians
and scientists. This is a task not
for one group, but for the nation
as a whole. led by organized work
ers. industrial, agricultural and pro-
fessional.
The Place of Professional Workers,
Technicians and Scientists In a
Program Of Security
It is on behalf of the Interpro-
fessional Association for Social IN
surance that the present speaker
has a place on the program, And