Evening star., 1939-06-06

Radio Forum.
nessmen, as citizens and as tax
payers. know you will study these
amendments in detail as they are
reported to you in your newspapers.
I want now, however, to high light
some of the points which seem to
me of major significance
First, as to taxes: The old-age
insurance tax has been frozen at
its present rate for three years. This
means that the employer and the
wage-earner will continue to pay
l per cent each on the employees
wages, whereas under the law as it
now stands the rate would increase
to p per cent each January l next.
I have supported this change be-
cause I believe it is sound and be-
cause it will benefit both employers
and employees. This proposal alone
will save them at least 1925 900 900
during the next three years.
In connection with unemployment
compensation, the committee has
recommended plan which I sub
mitted. This would enable the
States to reduce their unemployment
insurance contributions, provided
they have built up a certain re-
serve and meet minimum benefit
standards. During 1910 alone this
provision may save employers from
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result in great savings in later years.
Other changes proposed by the
committee with respect to unem-
ployment compensation will save
employers an additional S80OOO,O 900
next year
For example, the committee has
recommended that the pay roll tax
on unemployment compensation be
confined to the first $4,000 of salary.
On present business activity. that
alone will result in permanent saw
ings to employers of s65, 100000 each
year. In addition, the penalty un-
der the present law of 80 per cent
for the delay of employers in max
ing returns of the unemployment
compensation tax has been sharply
reduced, which will also result in
substantial saving each year.
Protection Strengthened.
And now as to the protection Of
fered by the Social Security Act:
These have been substantially
strengthened. And this is all i'm
portant, for the whole objective of
social security is to provide some in
come that will be at least fairly
adequate for basis needs and that
will tide people over when the haz-
ard OF want becomes a reality. This
protection is necessary not only for
the individual but also for his fam
lily After all. man out of work
does not confine his worrying to
himself; his worst worries are for
his wife and children-how to feed
and clothe and shelter them. And
no man looks forward to his own
old age apart from what the course
OF life will mean to those who are
dear to him and dependent to him.
He wants old-age security for his
help-mate as we'll as for himself.
Above all, he wants some assurance
that his wife and children will not
be left utterly stranded If he him.
self should die
My fellow-members and I of the
committee and of Congress share
your concern for family security. We
believe that the conservation of
family life is the prime purpose be-
hind all our efforts to promote social
security. And I think 1 may say
without fear of contradiction that
every one OF our proposals with re-
spect to insurance benefits and as
sistance payments represents gen.
uine step toward this goal-the safe
guarding of the American family.
To this end, the old-age insur-
ance program has been liberalized
and extended. Monthly benefits will
begin to be paid in 1910 instead of
being postponed until 1912. The
stop date which now prevents
wages earned after age IS from
counting toward benefits will be re-
moved, thus permitting workers to
continue increasing their protection
until they actually give up working.
These two changes will greatly in
crease the benefits which will be
payable particularly to those now
approaching retirement age.
Monthly Benefits Increased.
Monthly benefits have been in
creased-irst, by basing benefits on
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present, on accumulated wages; sec
ond, by providing supplementary
benefits for the wives of annuitants.
Under this new plan beneficiaries,
whether married or single, will get
more protection than they could
buy with their own contributions
elsewhere. At the same time the
equity and adequacy of the system is
increased by recognizing that the
need of married couple is as gen.
eral rule greater than that of one
person alone.
All OF these changes promote fam
lily as well as individual security for
those who live to reach old age. But
death must still be reckoned with
and families must still be provided
for when the breadwinner dies. And
so, in addition to liberatzing bene-
fits for old age, the committee pro-
poses that benefits be provided for
the dependents who may survive the
worker. The groups most likely to
need this protection are aged wild
ows, younger widows with children,
orphans, and dependent parents. For
widows, the monthly benefit would
be three-fourths of the husbands S
basic benefit, had he lived; for each
orphan and dependent parent, it
would be one-half of the basic bene-
fit.
Under this proposed plan about
$1,750, 900 900 in benefits will be paid
out in the next five years-paid out
as a right to those whose working
years are over-to their wives-alsc
to widows and to fatherless chill.
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