Evening star., 1943-06-03
Bill Broadly Extending
Social Security System
Offered by Wagner
Modified 'Beveridge' Plan
Would Add Payroll Tax
Of 5 Billions Yearly
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age benefit Of that worker. If there
was no surviving spouse, it could
be paid to any person to the ex-
tent that person paid the burial
expenses.
Increases Benefits.
Starting January |, the mani
mann benefit for old-age and sur
vlvors' insurance would be in
creased from S35 to S12O a month.
The minimum would be raised from
SO to $40 for an unmarried work.
or, and $50 minimum for a worker
with dependent wife over so.
Extends old-age coverage to farm
hands, domestic workers. emploves
Of non-proflt institutions, hourly
employees Of the Tennessee Valley
Authority, and optional coverage to
State and municipal employees not
already covered by local systems.
Al men and women in the armed
services would be given wage cred
It's for the entire period Of mill
tarE service. 50 that the war yeter-
an and his family would be insured
for all social insurance benefits.
without deductions from pay during
military service The cost of this
would be borne directly by The Fed
7Tal Government.
cderal unemployment Insurance.
Tho new national unemployment
insurance system would be nan
dIed by the Social Security Board,
with benefits payable for 26 weeks,
and A possible extension to 50 weeks.
If the funds available are deemed
adequate, but the board could re-
Nulre the Idle worker to attend
training course while receiving COM
pensatiOn. Coverage would be ey-
tended to farm workers, domestics
and American Scamen.
Weekly benefits would be so per
cent Of the first sI2 Of average week
~ wage, plus 25 pc cent Of the wage
between Sl2 and S56, Increases
would be allowed for dependents. up
10 4 maximum Of $50 a week. The
waiting period would be one week.
These benefits also would be avail
able for periods OF temporary dis
ability, and married women workers
would be entitled to the above rates
for - weeks Of maternity leave.
Men and women DISCHARGED n0m
military service would draw unem-
ploNment compensation allowances
ranging from S12 to $50 week, ac-
COrdIng to number OF dependents.
This would continue for % weeks
Of unemployment, and might con-
t.nue for 81 weeks, If that time is
established for other insured work
erS. The cost Of these allowances
TO returning SoIdiels would be met
by the Federal Government.
Hospital and Medical Care.
In explaining the new medical in
suIance, Senator Wagner empha-
sized that it leaves the insured IN
dlVlduaI free to select his own ply
SlClan, from among all the doctors
IN the community who have agreed
Voluntarily to 30 INTO the insurance
system. The doctors who 90 into
the system also are free to accent
or reject patents Doctors prac-
tSlng as specialists would be emitted
10 special rates.
Hospital care is limited to 30 davs
year, with a possible maximum of
90 days If experience proves the
1und can stand i, All qualified hos
pltals are e2.2ible to participate.
and all ailments are covered for hos
pltal care, except tuberculosis or
mental disease. The cash beneft,
or rate Of payment to hospitals.
would be not less than So or more
than s. a DAY.
Self-emp.oyed farmers. business
men and professional gTOurS would
pay, as a substitute Tor the payroll
tax Of wa2e-cancrs. 7 reI ceMr Of
the market Vqlue Of their services.
up to the lrst 53.OG0. This would
e1tjtIe them to cld-aec and sur
NlNoES, permanent disability. medical
and hospital insurance.
Public Assistance.
The bill also reVIseS the present
program Ct FeCeral-aid grants TO
the States for aged needy persons
not covered by insurance. for de-
pendent children and for the blind
At the present the Federal Govern
ment matches State allotment5 for
such purposes. This bill adopts a
schedule OF variable grants. ranging
from so per cent up 10 IS Fer cent.
OF the total expended, depending Of
the per capita income OF the State.
The higher grants would so to
the States with low pcr capita in
come. This proposal has been adj
Nancod Ill Congress before. but has
proved highly controversial. These
grants come from general Federal
funds and State revenues have 70
connection with the sOCIal-nsuyance
system
Senator Wdgncr drew the follow
Ing comparison today between this
American plan and the BcverIdge
plan for postwar security in Eng
land.
LISl, lilt btstI4t-P pan puts
more than half the cost on the gem
Cral treasury in the very first year
OF operation. The sOClal-inSuranC
plan under this bill is financed at
the outset by equal payroll contri-
button of employers and employees.
except for the payments into the
fund by the Treasury to cover the
insurance rights of war veterans
There would be some additional in
Creases out Of general revenue to
cover grants to the States for pub
lie assistance
L personally favor substantial
Government contribution into the
Soclal-msurance trust fund. but ap-
preclate that the Treasury cannot
carry this burden now on TOP of its
war and immediate postwar needs.
This bill therefore coutamplates
Government contribution into the
fund beginning after a period of
perhaps 10 or Is years, and inCreas-
ing gradually until 1t represents
about one-third of the total when
old-age benefits paid out reach their