Milford chronicle., 1936-12-18

TWO major proposals respecting
amendment of the law will confront
Congress. One, emanating from or
ganized labor, will demand that the
entire payroll tax be shifted to the
employer. AS the law now stands, it
is a $3.50 proposition as between
employer and employee in the mat
ter of contributions" to the old age
retirement fund. The employer gives
the government his check covering
the tax of both himself and his en-
ployee, acting, in a sense, as the
governments agent in collecting
from the wage Garner the latter's
half of the tax.
Move To Extend Plan Seen
The other proposal, emanating
from the social security enthusiasts
and welfare workers, and champion
ed by Chairman Winant, is to ex-
tend the scope of the old age re-
tirement plan to include those class
es of workers now outside the act,
notably farm labor and domestic
servants.
If the old age retirement plan is a
bonanza for the wage Garner; if the
pensions he is scheduled to receive
from the government constitute
giving him back a great deal more
money than he paid in; if, under
the government plan, the eligible
wage Garner is buying an annuity at
bargain price, and a cut rate, then
why should not every citizen be ELI
gible to participate? Why should any
voter be excluded? That is the ar
gument for extending" the scope
of the plan to include those classes
and groups who are excluded under
the present law.
If, on the other hand, the prac-
tical difficulties of administering the
plan, as respects the 26 million
wage eaTneTs in business and in
austry, are so great as to make It
superhuman undertaking, what
happens when farm labor and do
nestics are included, and every far
ner, who occasionally hires a help
er, becomes a registered employ
IF" with an Identification number"
md every housewife, who hires a |
'ook or a maid, or a nurse girl, or a
is required to file a |
monthly return in quadruplicate?
JObless Tax Fight Looms
Another and an entirely different
lngles of the social security act is
Iure to be a bone of contention in
he New Congress. This is the un-
insurance tax feature.
each state is supposed to set up its
'wn unemployment insurance plan,
eVy its own payroll taxes to sup
iort such a plan, and pay its own
Gale of benefit payments, but all un-
er federal supervision" and all
ubjject to the approval. and in con-
Ormity with policies" prescribed
y the security board.
Congress, in writing the social Sc
urity act, levied one per cent pay
oil tax payable by all employers of
light OP more persons, and COM
uted against the total payrOlls, but
roVided for a drawback" of 80 per
ent of this tax by employers in ;
-ates where there was a state un-
insurance plan and tax. .
his federal unemployment insur-
nee payroll tax went into effect
st January but is payable on an
lnual basis, first payment being
le next month. Sixteen states, in
uding Massachusetts,, have put into
feet state unemployment insur-
ice plans. Employers in these
ates will escape 80 per cent of the
deral tax. They will, in almost all u
.ses, have to pay to the states a
ore money in payroll taxes than :
e one per cent federal tax.
December 81 Is "Deadllne"
Thirty-two states have as yet
lied to enact unemployment in
rance laws. The "deadline" is De-
mber 81. There is a great hullaba-
0 about how these delinquent"
ates stand to lose in the aggregate :
out 100 million dollars, that the
lployers in those states will be re- II
ired to pay into the federal treas
y without any drawback or credit.
This all boils down to a very
nple proposition "a drive to make
states levy new payroll taxes on z
Dir own citizens. so that they may
snefit" by drawing back a slice of
federal tax.