The Waterbury Democrat., 1936-10-26

COuL1lEy EOpISS OA pOobCAop 0uAACSAA'S and pay envelope inserts warning workers that Q federal tax will be deducted from their pay beginning January 1, 1887. The board has received also, by long distance tele- phone, telegraph, letter and in per- son, numerous protests and com plaints concerning these materials and the manner of their use to- gether with inquiries as to the de- grees of their accuracy and authen- ticity.
 "The statements are nearly all either misleading as. to the amount of tax that will be paid or actually mis-State the amount of tax that will be paid. They make no refer ence to the fact that the employer is also required to pay a tax. Ever worse, they are completely silent ol cast doubt upon the substantial benefits that will be payable tc workers. Some of these statements go so far as to suggest that the government may not liev up to its promise to pay these benefits wher due.
 Undoubtedly, many of the em- ployerS involved have been misin- formed as to the facts-some are even laboring under the impression that these are official statements issued by the government which they are required to distribute. "The facts are that the Federal Old-Age Benefits section of the So- cial Security Act goes into effect January l, 1887, and under these provisions, a nationwide retirement benefit plan is being set up where by workers will build up rights to the payment of regular monthly benefits beginning at age 65 ir proportion to the wages they have earned prior to that time. These benefits will always amount tc more than the worker has paid ir taxes, no matter how young tht worker was when the started pay. ing taxes and no matter how higf his wages have been during thu time he has paid taxes.
 Moreover, every worker eligible and it is estimated that 26 million will be eligible at the outset-wil receive a monthly retirement bene fit upon reachcing the age of 6! larger tha nhe could purchase iron any private insurance compan. with the taxes he will have pait the government. These monthl, benefits will range from $10 to $85 a month. If a worker die before reachicng age 65 lump sun payment is made to his family This lump sum will amount to 31 per cent of the wages he has earnet after 1886. If he dies after reach ing age 65 before he has drawl out monthly benefits amounting t. 3ha per cent ihs family will receiv the balance of the 36 per cent. Tn, tax that the employe must pa. amounts to only per cent for thu first three years and does not reacl the maximum of 3 per cent unti 1949.
 Several concrete examples vii best illustrate how much the month ly benefit will be. Let us first talk the case of a young man 35 year of age, who enters the system ol January 1, 1887, and remains in tn system for 30 years. If he earne' an average of $1O0 per month dur i ing that period he would receiv a monthly pension of $42.50 for tn remainder of his life. Now let u take the case of an older persol who was 60 years of age whel he entered the system on January 1887, and who earns an averag monthly wage of $100. When he re tires 5 years later he will receiv a monthly pension of $17.50. Tn young man, during the course of hi life, would have been taxed $90t and his employer would have bee taxed $90O, but if he dives out
 normal life expectance he would re ceive in benefits $6,000. The olde man would have been taxed onl $72 and his employer an equal sun but he would receive in benefits he lives out his normal life expect ancy, a total of, $2,500.
 '"The misleading statements tha are being circulated in pay envelope and on plant bulletein boards ia to mention that these benefits ar paid as a matter of right regardles of the amount of property or in come a worker may have. A work CT is not required to show that he in need and without relatives wh can support him as is true int h state old age pensions. The Sc cial Security Act not only provide state old age pensions for those al ready aged and in need, but als provides for the future a decer self-respecting system of old az security on nationwide basis whic Is designed to encourage initiativ and thrift by keeping the benefit to the wage earning history of tn worker.
 "As regards benefits, the signi ficant fact is that for the first tim in America it is possible fc workers to build up in an orderl fashion and under government pro lection some degree of financial in dependence for his old age in diree proportion to his earnings and nc as charity.
 "As regards taxes the importar facts to bear in mind are that tn workers will pay only 1 per cent fc l the first three years and never nor matchedl by an equal tax paid b than 3 per cent and that this tax