The midland journal. (Rising Sun, Md.) 1885-1947, 1936-11-20
SOCIAL SECURITY

n
social security was proposed to Con-
gress in February, 1884, by Senator
Robert F. Wagner of New York and
Representative David j. Lewis of
Maryland On August IA, 1895, af-
ter recommendations by special
committee had been incorporated and
both houses had overwhelmingly
passed the BILL the measure was
signed by President Roosevelt.
Chief among the laws provisions
are those encouraging the states to
set up unemployment insurance plans
through a uniform Federal tax on
pay rolls, and completely Federal
system of contributory old-age bene
fits financed by tax both on pay
rolls and individual earnings.
Other sections provide outright
grants-in-aid up to SIS month for
the needy aged, the blind, and de-
pendent children. Under these Sec
lions, the Federal government gives
so per cent of the grants-in-aid to
states with approved pension plans.
To finance unemployment insur
ance and old age benefits (as dis
tinguished from the pensions) taxes
on pay rolls and wages are used. The
unemployment insurance tax is al
ready in operation. The tax is one
per cent for 1896 pay rolls, will step
20 two per cent in 1887 and to three
per cent in 1898, at which level it
will remain. This tax is being paid
oy employers alone. The old-age
benefit taxes do not come into effect
until January l. Beginning on that
| date, the rates will be one per cent
IN the workers wages, plus one pei
cent on the employers pay roll, ris-
ing to a maximum of three per cent
.or each in 1949 and thereafter.
Who are the persons who come
within the scope of the system? The
1880 census listed almost 40 million
workers, but many had to be elimi-
mated for various reasons. The self
employed, proprietors, operators and
professional people (about II mil
lion were excluded from both sys-
ems Others excluded were Federal
state and local government employee
as, farm laborers, domestic servants,
sailors and employees of non-profit-
making educational and religious in
situations (about nine million).
Added to these ineligibles were
about half million workers over 65
years of age, some half million casual
workers, and about five million en-
ployees in establishments which have
lever than eight workers. For the
remaining 20 million, all eligible,
these facts hald true:
No one who reaches IS before
1912 may expect an old-age annuity.
No unemployment insurance will
be paid in a state until two years
after the state has adopted an unem-
ployment tax plan. wisconsin has
already complied with this require
ment.
The old-age benefit is based on the
workers earnings. 1t may attain, In
a very few cases, a maximum of $S5
a month, to be paid when the worker
retires. The minimum is $40 a
month. The worker Is said to be GER
tain to get back at least the money
he put in.
The worker will pay his contribu-
tion to the old-age fund on whatever
he earns up to $4,000 a year. This
sum is the top limit. The worker
does not pay on anything earned over
and above that. If he makes $4,000,
for example, his contributions will be
paid only on the $4,000 limit.
To be eligible for an old-age bene-
fit, person must have earned total
of at least $4,000 in one of the tax
able occupations between December
81, 1886, and his 65th birthday.
He must also have been employed at
least one day in each Of at least five
years during that time.
The employee who has worked a
sufficient time in an insured occupa-
ton will be entitled to an old-age
annuity even though he may shift to
an exempted occupation at future
date-The Pathfinder.