Evening star., 1941-10-01
President Will Ask
Congress 10 Expand
Social Security Plan
Fovors Doubling Number
OF Workers Covered and
Increasing Contributions


Ey the Associated Press.
A special-message will go to Con-
gress soon detailing President Roose-
velt's recommendations for a broad
expansion of the social security pro-
gram which would double the num-
Der of workers covered and probably
Increase the contributions of en-
ployers and employees.
Mr.. Roosevelt told a press confer
ence yesterday that such a move
would be beneficial in two days:
Deterring imitation by making
smaller amount of earnings avail
able for the purchase of scarce con-
sumer goods, and guarding against
deflation when the post-emergency
transition is made to normal econ
omy.
BY the Presidents own estimate,
the number of persons covered by
social security provisions would be
increased from 100000 to 3d.
100000.
Particulars of the plan were with
held pending preparation of the
presidential message, which Mr..
Roosevelt said would be sent to
Congress soon. Several, however, are
known to have been under discus
sion by interested officials.
Liberalized Grants Studied.
One of these called for extending
the contributory old-age insurance
system to farm laborers, domestic
servants, self-employed persons,
farm operators and others not cur
rently covered.
Another plan proposed broadening
the unemployment insurance regu-
lations to take in maritime workers
and employees of firms with a pay
roll of less than eight-both now
exempt classes.
Treasury and social security ex.
perts also were working on plan to
liberalize Federal grants to less
prosperous States, to permit pay
ment OF larger old-age pensions
non-contributory benefits, as con-
trasted to the payments to indi-
viduals made under the old-age in
surance SYSTEM.
The President said no considera-
ton was being given to increasing
the total Federal contribution to-
ward old-age pensions or reducing
the age limit of 65, but that the
Federal aid should be higher for
low-income States.
Under existing law the Federal
Government contributes half of
what the State puts up, with
limit of $40. This means that it is
theoretically possible for a needy
person over 65 to get as much as $40
a month, but none does. The aver
age for the country is around $40.
Better Standard of Living.
The President pointed out that
some States can pay only 81 or Sc.
These States with low taxable values
and low earning power need a
better standard of living, he said.
No such inequalities exist under
the contributory old-age pension
system, which covers at present
principally industrial and white
collar workers 1t was in this clas-
siflcation that Mr. Roosevelt indi-
Gated the tax rates might have to be
increased.
The original law called for equal
contributions from employer and
employe of l per cent of individual
salaries up to $4,000. That scale
was to be maintained for the first
three years, through 1889. Then it
was to be raised to Ia per cent for
the next three years, and so on
until each would pay per cent
after 1949. However, in 1889 Con-
gress froze the l per cent tax
through 1912.
One plan reported under study
would raise the tax to Ia or per
cent next year.
Under the existing dual per cent
levies s2,582,000,000 had been
amassed in the old-age insurance
fund at the end of August.
Unemployment insurance benefits
are financed by a 8 per cent pay
roll tax, paid by the employer alone.