The Waterbury Democrat., 1937-01-08

A complete legislative program
for the amendment of the federal
social security act, In order to
spread its financial burden, extend
its benefits and establish 1t on a
more sound and adequate basis"
was presented by the American AS
ISOLATION for Social Security in It's
monthly publication Social Secur-
ity" for January. The association as
serted that in its present form "the
act motto only falls to achieve the
aim of establishing protection
against the hazards of modern in
dustrial life, but, through its I'M
sound method OF taxation, may ag-
gravate existing insecurity" While
the sections of the act granting sub
sides for the aged, dependent chill
dren and the blind were declared
sound in principle and amenable
to simple amendments" drastic
revision" was deemed imperative If
theol dage insurance and unem-
ployment insurance systems are to
provide real and permanent secur-
ity. The task of amending the act
was declared to be foremost among
the problems confronting the 18th
congress just converting"
Propose Changes
The main changes recommended
are: Reduction of the employer
employee contributions for old age
insurance from per cent in IL
years to per cent in 20 or 40 years;
the addition OF federal subsidies
drawn from progressive taxation;
the substitution of a subsidy plan
for unemployment insurance instead
Of the present tax-offset plan, the
subsidies to be drawn from payroll
taxes, as at present, but also sup
plementcd by federal funds drawn
from progressive taxation; in both
cases fiat rates for contributions
and benefits are urged to simplify
administration; and liberalization
Of the supbsidy sections for non
contributory pensions, child welfare
and blind pensions.
Old Age Insurance
The association criticized the old
age insurance plan as offering mo
security to the Older population"
and containing many anti-social
features which must be eradicated."
1t charged that "the financing of
the system exclusively through
taxes on wages and 'payrolls places
the cost largely on the workers in
their dual role OF wage-earners and
consumers" The organization as
sailed the excessive and rapidly in
creasing taxes" as well as the pyra-
midlng of "the contemplated solos
sal reserve Of Al billion dollars by
$780, Moreover, the annuities Of
fered would be entirely made
quate' for "at least a generation to
come" since most wage-earners will
not be able to procure an annuity
of more than $50 month for the
next twenty or thirty years, Social
Gecurity" declared. I'm It's attempt |
to pay unearned annuities OF at least |
$40 month TO insured persons
reaching 65 in 1912, the government,
In order to avoid the burden 1t
should rightfully bear, Is forcing
the younger workers to pay higher
contributions than would be needed
for their own annuities. Moreover,
the reduction in national purchas-
ing power brought about by these
high taxes may actually intensity
the forces that periodically plunge
us into depression"
Remedies
The following changes we're rec |
commended TO remedy these defects:
In the first place, the financing
base should be broadened TO include |
a governmental contribution, de-
rived from progressive taxation"
Provision should be made for IAN
nuities Of $50 or s35 monthly to all
insured persons and their wives
reaching the age of 65 by 1910 or
1912. The deficit would be made
up by the federal governmet. The
burden would not be too great since
the government would thereby save
to large extent It's allotments to
the state on-contributory pension
systems, which otherwise would
have to supplement the insurance
plan for generation
With government contribution
the tax load on employer and en-
ploye could be lightened from 6 to
about 4 per cent of payrolls. The
graduated increase In the tax should
be made at five or ten instead OF
three-year intervals. Such plan
would enable the system 10 give
adequate annuities" to the older
insured workers AT once" and
eliminate the accumulation OF
tremendous reserve with its attend
ant economic and political dangers"
The effect would be that besides
distributing the cost more equit-
ably over the entire population, the