The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-01-02


While passage at this session is
not expected, the succeeding Con-
gress may have to reckon with this
robust movement more seriously.
Townsendites say the seventy fifth
will be Townsend Congress" and
they even threaten a third party
next fall if the two old parties plat
forms ignore their demands.
The movement is strongest in the
West, but is showing unexpected
power to reward and punish in the
Midwest and Northeast states and
is now spreading southwark
McGroary Bill Official"
Opposition is bipartisan The
Democrats officially point to the
Presidents Social Security Act as
the Administration 5 answer to the
cry Of the old folks The Repub-
licans generally are critical OF the
Townsend plan as the most ambi-
tious spending program yet adj
vanced.
AS the issue stands, Townsendi5e
hopes center in H. r. 7614," intro
duced in the House last April and
later revised. 1t is better known as
the modified McGroarty bill" The
Townsend Weekly refers to it as the
official measure. This bill, which
may again be changed, now has the
following provisions:
l. A 2 per cent transaction or
turnover tax on all sales, including
those by producers, manufacturers,
wholesalers, jobbers and retailers;
2. Supplemental taxes, including
an income tax Surcharge equal to
10 per cent of the present Federal
income tax, and 2 per cent tax
on inheritances and gifts;
Not All Would Get $500
3. Pensions for all laW-abiding
men and women citizens past so, up
to 5000 a month. Contrary to a
widespread impression, the pending
bill does not guarantee everyone
past 60 a 5000 monthly pension. Any
Cougar old person who has net
income of more than $4,000 a year
would not be entitled to the PEN
sion, and one with an income from
other than personal services of less
than $4,000 must deduct such income
from the Federal annuity. Even
fully qualified pensioners would not
be guaranteed 5000 a month, but
would share equally the money
available from the proposed taxes
The only condition to an annuity is
that the recipient cease all gain
full pursuit" spend his entire pen
sion each month, and spend no more
than 10 per cent of it on charity.
The plans most forceful critic so
far is DR.. Edwin E. White, professor
of economics at the University of
Wisconsin and director of the
Presidents Committee on Economic
Security, which drafted the Wagner
Lewis Doughton Social Security
Act last session.
Here are the Townsend claims
and DR.. Whites counter claims as
to the variability of "OldAge
Revolving Pensions" as the Town
send Plan is formally called.
Differ in Beneficiaries
Hardly more than 100000 Amer
leans will be affected, says DR..
Townsend, and probably only
100000. But DR.. White says there
are 11,5S2,0oO Americans past 60.
Count out the non-citizenS. ha-
bitual criminals and those who will
refuse to knock off work, he says,
and you get 100000 pensioners.
To pension these would cost
$24,000,000 900 year.
The two supplemental taxes on
incomes and inheritances would
produce at most 100000 900. Say
only $4,000 100000 is needed, sug
gests DR.. White: that is just little
less than the United States of
America spent in the World War,
twice all emergency Federal ex-
penditureS for the six years of de-
preston. and considerably more
than double all Federal, state and
local taxes for all purposes in a
year. To pension this 8 per cent
of the American people, he says,
would take 40 per cent of the ma
tional gross income.
But, answers DR.. Townsend, the
transaction tax has no relation to
national income. The Townsend
Plan, he says, lis predicated not on
income but the national trans
actions turnover. The financing of