Evening star., 1939-08-08
Rayburn Cites Change
In Security Act as Big
Accomplishment
Radio Forum Speaker
Reviews Advances in
10Th Congress

Representative Sam Rayburn OF
Texas, majority leader OF the House,
discussed THE Work of Congress
last night in the National Radio
Forum, arranged by The Star and
broadcast over a Nationwide net
work of the National Broadcasting
Go. The text of his address follows:
1t has become customary for the
majority leader of the House of Rep
resentatives to give the people, over
the radio, an account of his stew
ardship after the close of each ses-
sion of Congress.
I would like here to express my
sincere thanks to The Evening Star
National Radio Forum and the Ma
tional Broadcasting Co. for giving
me this opportunity to review the
work of the first session of the 18th
Congress I say work" ad-
visedly, because this has been a
working Congress. We have not
been able to accomplish all that
we would have desired. Some meas
ures that we hoped to enact have
at least gone over for later con-
sideration.
To prove this has been an indus
trious and working Congress, will
now review some of the outstanding
accomplishments of this session.
Social Security Amended.
The first two things that I shall
discuss are the amendments to the
Social Security Act and the revision
of the revenue laws. Let me say to
you that think these acts are so
outstanding that if they had been
our full work, the Congress just ad-
journed would have deserved the
thanks of the American people.
This is the first administration in
the history of the country that ever
undertook a real program of social
legislation. Under this administra-
ton, the first Social Security and
Old-Age Pension Acts were passed
one of the most far-reaching and
beneficial steps ever taken in this
Or any other government.
At this point l should like to
summarize the most significant fea-
lures of the social security amend
ments.
The three principal phases relate
to the tax changes, the llberaliza-
ton of the Federal old-age insur-
ance system and the augmentation
of the Federal-State program of
social security.
The old-age insurance taxes have
been frozen for the next three years
at per cent on employer and per
cent on employe, which results in
an estimated reduction for the
three-year period of some S825 000,-
600. The unemployment compensa-
ton taxes have been limited to the
first $4,000 of an employees wages, in
conformity with the old-age insur-
ance tax provisions. The resulting
annual savings are some $65 900 900,
and in addition provision is made
for refunds and abatements, which
means an additional saving to tax
payers of some $15000,000. In addi-
ton, what might be termed "nuis-
ance contributions" Of fraternal and
certain other non-prof1t organiza-
tions are eliminated.
Benefits LlberallZed.
The liberalization of the old-age
insurance provisions is of the ut
most importance. Not only Is the
date for beginning monthly benefit
payments advanced from 1912 to
1910, but the benefit provisions for
retired workers are iberalized and
eligibility requirements are made
easier for those retiring in the early
years. In addition, the new law
provides for auxiliary benefits in the
case of the retired worker with an
aged wife or children under 18 years
of age. OF vital interest to all peo-
pie covered in the Federal insurance
system, regardless of age, are the
survivors benefits that will now be
payable to young widow with
children, to aged widows and to de-
pendent parents Gf there is no
widow or children on the death of
q covered worker.
The effect of paying additional
benefits to the married older work.
ers who retire and of paying bene-
fits to the survivors of workers is to
afford lifetime family protection in
stead of only individual old-age pro-
lection This extension of the Fed
eral old-age insurance system in
creased by millions those who will
be protected and makes the protec-
ton that is afforded now more COM
plete. since it recognizes the family
circumstances.
hn 0f tn nv
panded Federal old-age and sur
vivors' insurance system has been
extended to include thousands of
employees who were not included
under the former language of the
law. The main groups of employees
which are now covered are sailors
and national bank employees and
employees of Federal building and
loan associations.
Another main category of changes
relates to the cooperative Federal
State program of social security
which covers millions of men, wom-
en- and children in this country.
The amendments authorize in
creased Federal financial aid for
public health, maternal and child
welfare, crippled children, and voca-
tional rehabilitation. The amend
ments also increase from $50 to $40
q month the maximum amount for
old-age assistance and blind assist
ance for which a State may obtain
80 per cent financial aid. Another
amendment increases the Federal
matching ratio to States for aid to
dependent children from one-third
to one-half of the aid granted.
In my opinion, the social security
amendments of 1889 represent as
great an advance in providing Sc
curity to the people of this country
as did the original Social Security
Act enacted in 1885. The tax relief
granted should be of tremendous
value in helping the general eco
nomic situation of the country. The