Evening star., 1936-11-17
Labor and Social Security.

The report on social security laid be-
fore the American Federation of Labor's
convention at Tampa very wisely re-
frains from open opposition to the pay
roll taxes by which the benefits under
the act are to be financed, although
1t does leave the way open for future
opposition. Nor does the report raise
the issue directly on the employees con-
tribution to security taxes, which was
exploited politically by the Republicans
In the closing days of the campaign.
Labors attitude on the social security
act is to approve the principle heartily.
So heartily is the principle Endorsed that
labor places itself on record, in advance,
in favor of a constitutional amendment
should the present act be invalidated by
the Supreme Court. But for the present,
its attitude on the controversial pay
roll tax is mildly to question 'the wisdom
OF obtaining these the social security
funds through pay roll tax which to
a great extent is to be paid directly or
indirectly by the workers
The workers direct contribution TO
the pay roll taxes levied for unemploy-
ment insurance and old d-age benefits is
small in proportion to the tax paid by
the employer. To the unemployment tax
on pay rolls the worker contributes
nothing. To the Old-sge pension tax on
pay rolls he contributes equally with
the employer. beginning at one per cent
of his salary in 1887 and by 1949 reaching
three per cent. But if worker" is
used anonymously with consumer" the
worker will contribute largely to both
taxes, as the cost of pay roll taxes will
in most cases be passed on directly to
the consumer in the form OF higher
prices resulting from increased cost of
production.
Labor" says the report, "feels that
the burden of insecurity should be lifted
from its shoulders and that the cost
should be a social responsibility. We
believe that our Federal Government has
the power to levy and collect taxes to be
used to further social security purposes"
But does labor expect to escape, in the
end, the tax burden that is necessary to
finance social security? In what form
could such tax be levied? And if the
payment of benefits through unemplOy-
ment insurance or old-age pensions ts
to be conceived as q social response
bility." is organized labor to repudiate
its share of social responsibility?
One of the significant facts in relation
to social security is the acts creation Of
another special class of beneficiaries
whose aim it will be to increase the
benefits by passing on the cost to some
body else. We have seen what can be
accomplished by such organized classes
as the farmers and the veterans in oh
tanning special financial consideration at
the hands of the National Government.
In January we shall witness the creation
of an entirely new class of beneficiaries
composed of the 100000 600 workers who
are expectant recipients of old-age pen
sions. If organized groups within this
group begin the agitation to rid them
selves of all direct contribution to the
pension fund on the theory that social
responsibility" of the Nation rids them
Of the obligation to contribute, the social
security act will become more dangerous
and unwieldy than in its present form.
If we are in need of new conception
Of social responsibility, we are also in
need Of a new conception of the socially
responsible. They are not confined
merely to those who pay direct taxes.