Evening star., 1943-06-03
Wagner Offers
Bill 10 Widen
Social Security
National Insurance
System Would
Be Established
BY J. A. OLEARY,

the Social Security Act, addil y
s5,000,000,000 a year to payroll
taxes and bringing virtually
every individual into a broad pre-
gram of Federal welfare in
surance, was introduced in the
Senate today by Senator Wagner,
Democrat, of New York.
Millions of farmers, domestics,
small businessmen and self-em-
ployed professional groups, not
coXered by the present law, would
be included.
In place of the present plan 81
having the Federal Government ad-
minister old-age annuities, while
each State administers it's own type
OF unemployment compensation, the
Wagner bill sets up a unified ma
tional social insurance system.
Adds Medical Care.
To old-age annuities and unem-
ployment compensation would be
added medical care and hospitaliza-
ton; permanent disability insurance
for the worker who has not reached
retirement age; lump-sum death
benefits; temporary disability in
surance and maternity benefits and
unemployment allowances for re-
turning members of the armed forces
following their discharge.
1t is the first definite move in
Congress in this direction since well
fare agencies of this country and
Great Britain began planning to
meet postwar economic and social
problems.
The Wagner bill Is not a postwar
measure, however, since it would
take effect next January, If enacted.
With congressional leaders con-
sidering a summer recess from July
4 to Labor Day, observers on Capitol
Hill see little chance of passing a
measure of such wide scope this year.
Not only does the bill enter new
fields of Federal insurance, but it
increases the benefits of the existing
phases. =
1t calls for 6 per cent employe
and 6 per cent employer contrl-
button on all wages and salaries, up
to the first 50 900 year, paid or re-
ceived after December 81. -.
Cites Automatic Increase.
At present the employer pays )
per cent for unemployment IN
surance and l per cent for old-age
annuities. The employe now pays !
per cent toward oldage annuity
Senator Wagner pointed out today
that. without any change in the law,
the tax rate of both the employer
and employey y for old-age annuity
will go up next January from to
per cent. -
Under present law. therefore, the
employer would be paying a total
of S per cent and the employe- a
total Of 2 per cent next January.
This means that the new bill adds
another l per cent to the employs
er's tax and per cent more to the
employe, to make each pay 6 per
cent.
Declaring that I'VE can readily
afford this increase in payroll col-
lections," Senator Wagner argued
the bill would help meet the imme-'
diate wartime imitation problem.
The danger of imitation today
springs from two separate but re-
lated sources said the New York
Senator The first is an inflation-
ary gap of about $4,000 900 900 this
fiscal year-a gap between the
money available for civilian pur-
chases and the supply Of goods
available for sale. This gap cre-
ates a pressure on price ceilings
which cannot be eliminated by price
control or rationing alone.
The second phase of the danger
is the tremendous accumulation Of
savings during the war years, which
will be available for the purchase
of consumer goods Immediately
upon the close of the war"
High lights of the new unified
social insurance plan are:
1t would set up new Nation
wide system of Federal employment
offices, repeating the Wagner-Peyser
Act, under which the present Fed
eral-State employment offices oper-
ate. In addition to finding jobs
for war workers and war veterans;
these Offices would cooperate in
administering the new unemploy-
ment insurance system.
New Old-Age Benefit.
Starting January /, the present.
Federal old-age insurance plan
would be amended to include
monthly cash benefits to a worker
who becomes permanently disabled
before reaching retirement age.
These benefits would equal the old
age annuity payments. and be in,
creased for dependent wife The
Social Security Board would ar
range to rehabilitate the disabled
worker wherever possible. -
The present retirement age is 65..
The bill lowers this to 60 for women,
workers only.
On the death of any insured
worker, the bill provides for lump
sum payment to the surviving spouse
equal to six times the primary old
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