Evening star., 1943-01-12
3 Pei. Pay Roll Tax
Forecast in Security
Recommendations
RooseveIt's Dotu for
Congress May Include
Hospital Cost Provision
By JESSE O. IRWIN.

nospitoI Cost PROVISION
BY JESSE o. IRWIN.
The. factual data President
Roosevelt plans to submit to
Congress for development Of q
war and postwar "cradle-to-
grave" social security program
will include recommendations
for an increase from 5 to 8 per
cent in payroll taxes, authorita-
tive sources said today.
OF this total an employer would
absorb 5lz per cent and an employe
~ per cent. The current Federal
unemployment and old-age and
survivors insurance taxes call for
4 per cent employer and per cent
employe contributions.
The tax increase, besides narrow
Ing the imitation gap, would provide,
IT was said, for the immediate ex-
pansion Of the program to include
payments OF hospital costs, and
permanent and temporary disability
compensation,
Calls for "Work for ALL"
Congress will also be informed in
. report drafted by National
Resources Planning Board COM
mittee that the postwar economy
must provide work for all who are
able and willing to work.
The committee Is understood to
feel that for great numbers whose
work is interrupted, the social in
surance must carry much Of the load
Of providing adequate income.
This committee also is reported to
have recommended that where the
insurance or work policies fail to
take care of an interruption in In
come. adequate guarantees of min
imum aid and assistance must be
given both to individuals and
families through . general public
assistance system. a..
Would Spread Services.
It is also understood the COM
mittee has recommended that where
adequate services essential to health,
education and welfare OF the popula-
ton are not available, public provi-
sion should be made for the develop
ment Of such services.
The committee, known as the
Technical Committee on Long
Range Work and Relief Policies, de-
voted two years in the develop
ment Of its report. It's views are
reported to differ only slightly from
those expressed In the British Bev-
eridge report on postwar social in
surance and allied services. The
latter holds income security, which
Is all that can be given by social
insurance, is so inadequate a pro-
vision for human happiness that
to put 1t forward by itself as a sole
or principal measure Of reconstruc-
ton hardly seems worth doing"
"It should be accompanied by an
announced determination" the
Beveridge report adds, Ito use the
powers Of the State to whatever
extent may prove necessary to in
sure for. all, not indeed absolute
continuity Of work, but a reasonable
chance for productive, employment.
Sees Unemployment \ Waste.
Through it should be within, the
power of the community to bear
the cost Of the whole plan for So
ciai security, the cost is hes.vy and,
II to the necessary cost waste Is
added it may become insupportable.
Unemployment, both through in
creasing expenditures on beneflt
and through reducing the income
to bear those costs, is the worst
form Of waste"
It Is understood that the data to
be submitted by the President will
also include recommendations to ex-
tend old-age and survivors insur-
ance coverage to domestic servants,
agricultural workers and to en-
ployes in non-profit institutions.
Annuities for the self-employed
may also be recommended.
Congress will be asked to study
the feasibility of reducing the re-
tirement age of working women
from as to 60, and to reduce the
are eligibility for benefits OF widows
al. qualified workers from 6o TO %.
-. Includes Federalization.
LIBERALIZATION of the State un-
employment compensation system
Win be included In the recon-
nnendations, it is understood, to
insure adequate out-of-work pay
ments to workers in all States dur
ing the postwar readjustment
period by pooling all State unem-
ployment funds. Extension OF COW
erage to employees in small firms
may be requested. Congress will
Be asked to raise the benefits and
make them more uniform.
In the field Of public assistance,
It is reported, recommendations
would include extension Of current
programs to cover all persons IN
need and to provide for variable
grants Of Federal funds to the
States In the amounts to be de-
termined by the States ability to
fbe rpsfs