Evening star., 1939-08-11

II LIE fAtIh, IN. l., Aug. IL
President Roosevelt signed today a
bill making broad liberalizations in
the Social Security Act and cutting
hundreds of millions of dollars off
the tax burden it imposes.
The President said in formal
statement that these amendments
to the act represent another tre-
mendous step forward in providing
greater security for the people OF
this country
This is especially true" he added,
sin the case of the Federal old-age
insurance system which has now
been concerted into system of Old
age and survivors insurance provld-
ing lifetime family security instead
of only individual old-age security
to the workers in insured occupa-
tions."
In addition to the worker him.
self, millions OF widows and orphans
will now be afforded some degree OF
protection in the event of his death
whether before or after his retire
ment."
Last OF Major Bills.
In signing the legislation Mr.
Roosevelt disposed of the last OF the
major bills remaining from the con-
gresslonal session.
Millions of persons will beneht
from the changes made IN the Sc
curlty law. One amendment alone.
freezing for three years the present
tax rate for old-age insurance, Will
result in an estimated saving OF
$905 10000 to taxpayers.
The tax of l per cent on employees
and l per cent on employers, based
on individual earnings up to $4,000 a
year. will be retained at least until
January /, l943. Without the
amendment, the rate on each would
have advanced to IL per cent next
Janury /.
January /, 1910, also will mark
the start of old-age insurance bene-
flts-two years earlier than the old
law would have allowed. These
benefits are in the form of pensions,
as distinct from old-age assistance
for old persons who already are in
need.
$40 More Maximum.
People eligible for old-age assist
ence can get a maximum of $40 a
month under the new law, $40 more
than the previous limit. The Fed
eral Government will match State
funds dollar for dollar, up to $40, to
provide this aid.
Another tax saving, worked out by
a complicated formula, will result
from an amendment allowing States
to reduce taxes for unemployment
compensation after they have had
three years experience with their
individual systems. This tax is paid
only by employers.
The bill signed today also extends
oldage insurance benefits to widows,
children aged wives and aged de-
pendent parents and boosts Federal
contributions to the States for public
health services, vocational rehabili-
tation and maternal and child well
fare.
Text of Statement.
The text of Mr.. Roosevelt's state
ment.
It will be exactly four years ago on
the 14th day of this month that 1
signed the original Social Security
Act AS l indicated at that time and
on various occasions since that time,
we must expect great program of
social legislation such as is repre-
sented in the Social Security Act to
be improved and strengthened in the
light of additional experience and
understanding These amendments
to the act represent another tre-
mendous step forward in providing
greater security for the people of
this country. This is especially true
In the case of the Federal old-age
insurance system which has now
been converted into a system of old
age and survivors insurance pro-
Siding lifetime family security in
stead of only individual old-age
security to the workers in insured
occupations. In addition to the
worker himself, millions of widows
and orphans will now be afforded
some degree of protection in the
event of his death whether before or
After his retirement.
The size of the benefits to be
paid during the early years will be
Tar more adequate than under the
present law. However, a reason
eble relationship is retained be-