Evening star., 1938-12-10
The Political Mill
Republicans Who Endorsed or Were Endorsed
By Pension Groups Are Now Worried

to call them, are paid now IN all 48
States. the District Of Columbia,
Hawaii and Alaska. And the pay
roll taxes are grinding away to build
up a $4,000 900 900 reserve" by
1880. In only one State. California,
is the State government coming
through with the full SIS contribu-
tion-for all cases-to match the
Federal Governments grant. When
there is talk of increasing the pen
sion rate for the oldsters, 1t is clear
that Al of the States must give a
very considerable boost to their own
taxes to meet the Federal Govern
ment increase, if one is made, and
California must step out further, too.
The States are In no position to
do this.
Average Payments S19.
Take look at what is being done
in the way Of old-age pensions under
the Social Security Act. Old-age
assistance" was paid to 1,641, ISL
persons in the entire country, Alaska
and Hawaii, during October, 1888,
to the tune of $31, ,173,7O0. The aver
age payment was $40 q month, with
California having the highest aver
age payment, $3239, and Arkansas
the lowest, $422. Estimates for De-
cember show 1856. 100 persons re-
ceiving pensions, at q total cost
Of $31, ,496 900.
The Federal Government collected
in pay roll taxes, from workers and
employers, during 1887 about $7OO,-
100000, and in that year there was
paid out in old-age pensions about
5000 ,000-for the plan had just
gotten under way. A very consider
able nest egg was created, however.
This year 1t will be still further in
creased, probably by three or four
hundred million dollars. The re-
serves are rolling up.
A good deal has been said about a
pay as you go" old-age pension
plan. Senator Arthur H. Vanden-
berg Of Michigan, Republican, was
one OF the earliest advocates of such
a plan, denouncing the idea that a
reserve of 1000, 900 900 was either
necessary or wise. But even such a
plan would not do away entirely
with the pay roll taxes; the most
that could be done would be to con-
tinue the l per cent tax now levied
and perhaps cut it down later to a
half of l per cent. This plan con-
templates milder, smaller reserve
fund, a contingent" reserve fund
of perhaps six or seven billion dol
lars. 1t would. however, have the
effect of keeping the pay roll taxes
from being increased, as they are
to be increased under the present
Social Security Act until they reach
per cent.
G. O. p. Seeks Ideas.
Republicans. with their attention
directed to the day when they must
fish or cut bait. stand up for the
Townsend old-age pension plan or
turn against it, are casting about for
ideas. Some of them are talking
about a pay as you 60" plan, but
few of them are familiar with the
PAoSAoAOiAo Vi QUILL pldIl.
Meanwhile the Townsendites are
mulling over in their minds quota.
ton from William Shakespeare
whether it will be applicable later te
these strange allies - conservative
Republicans from Maine to the Pa
cific Coast:
And be these juggling f1ends nc
| more believed
That palter with us in a double
| sense;
That keep the word of promise te
| our ear
And break it to our hope"
They sincerely hope that the Re-
publicans. to whose aid they came
will stand up-but they are not toe
sure. What the Democrats will dc
they are not sure either, but they