The Coolidge examiner., 1940-05-02
Old Age Pensions

Old age pensions or annuities
for al persons who have passed 60
years were recommended to the
Unemployment Conference of the
House by its committee on Social
Security and Old age Pensions in
a unanimous report this week. The
report will have to be considered
by. the entire conference as part
of a final master report which VIII
be made after all committees nave
completed their recommendations.
The Social Security and Old Age
Pensions Committee, which has
/ been working for nearly two
months on its report, consists of:
/ Frank B Keefe (Rep., Wis.,,
chairman; Homer d. Angel T,
! Oregon(, Frank R. Havenner 3D..
! Calif.), Gerald w Lands (R., In
diana), Martin Smith 3D., Wash),
! John H. Tolan 3D., Calif), Jerry
Voorhis 3D., Calif.), and r. T.
Buckler (Farmer-Labor, Mimi.
! The report contains a careful
ANALYSIS showing the major i'm
portance of an old age pension
system for our whole economy,
and then make five comprehens-
i've recommendation for a ma
tional old age annuity system. "
1t emphasizes the vital relation be-
tween adequate consumer purchas-
ing power and national recovery,
showing that purchasing power
must keep pace with production or
under-consumption and un-emp,oy-
ment result Pointing out that
i production tends to increase
faster than employment, that be
cause of scientific methods of pro-
duction. part of the people are able
70 produce enough for all the peo'
ple and that if al the people do
not consume their reasonable
share of production, unemployment
is inevitable, the committee con
cluded that: "If it is necessary
for some group in society to De
enabled to consume it's share OF
national production without con
tributing to that production, then
obviously. this group should be
those people who have worked the
longest and contributed most IN
the past to our national wealth.
and to the building up of our very
efficient productive machine" The
committee showed that in 1889 the
level of production was equal tc
the record breaking year of 1879
but that nevertheless more than
million less persons were employ
ed in 1899 than in 1929.
The specific recommendations OF
the committee were as follows:
% The annuity system shoulc
be on a pay-asyou-go basis. Ihe
present social security system Is
criticised for tits serious della
tionary influence" since during
the fiscal year 194O-41 the Old Age
and Unemployment Insurance
funds together Will collect Sl,2OO,
600 900 more in payroll taxes thar
will be paid out in benefits.
or Pensions should be paid to
all American citizens over 60 years
of age who are retired from IN
dustry. 'If it is desired to deny
the pension to persons who Gear
w do not need it, it could be re
ouired that persons who are liable
to the payment of federal In
come tax must return, at the time
the tax is paid, any money recelv
, ed as pension payments during the
previous year. This would leave
the pension system as possible
recurring no investigator staff OF
individual records"
(3) There should be no differ
ence in the amounts paid to per
sons in the various states. The
states may, of course. supplement
the Federal payments if theyde
sire.
(4 The revenue should come
from a broad general tax such as
the gross income tax, as weA as
from taxes calculated to reduce the
volume of idle funds, such as
Individual income. inheritance, es'
state and gift taxes.
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