Evening star., 1944-12-17
President Signs Bill
Freezing Security Tax
But Urges Revision

Early consideration by the new
Congress of a broad revamping Of
the Social Security Act was fore
seen last night In President Roose-
velt's statement announcing that he
had signed reluctantly" the bill
holding the old-age insurance pay
roll taxes at per cent each on en-
ployer and employe
In view of the Presidents past
opposition to postponing the in
crease in these rates to 2 per cent
each on employer and employe.
there had been a strong expectation
In Congress that he would veto the
latest freeze" bill. This is the
fourth time Congress has put of the
increase.
The President explained that he
was less disturbed over the present
situation, because both major par
ties are on record for comprehensive
coverage under old-age insurance,
and he announced his intention of
submitting to Congress at an early
date a plan for broadening and i'm
proving the social security system.
He expressed the hope that, at that
time, a long, term plan for allocat-
ing the cost will be worked out.
Believed Raise Unnecessary.
Those who advocated freezing
the tax rates for another year
contended the increase was not
needed to finance existing benefits.
Even before the Presidents state
ment of yesterday, Representative
Dingell, Democrat, of Michigan, had
announced he would seek full hear
ings early in l945 on the Dingell-
Wagner Murray bill, which proposes
to add disqualification and medical
care to the social security program,
as well as to bring into the system
large groups not now covered by
the present old-age insurance fea-
ture.
Speaker Rayburn's announcement
that the President had signed the
freeze" bill brought applause from
members of the House, waiting to
clean up odds and ends of legisla-
ton before going home for Christ
mas.
The Presidents statement follows:
Il have reluctantly approved H. r.
1854, AN Act to fix the tax under
the Federal Insurance Contribu-
tions Act. on Employer and EN-
ployes for calendar year 1945."
Wanted Increase Imposed.
Il have felt in the past and I still
feel that the scheduled rate in
crease, which has been repeatedly
postponed by Congress, should be
permitted to 60 into effect. The
long-run financial requirements OF
the Social Security System justified
adherence to the scheduled increase,
and the increase was consistent with
wartime fiscal requirements.
'1 feel sure that the Congress
does not intend to jeopardize in any
way the benefit rights which have
already been built up in the past
and which will continue to grow
in the future However, I am less
disturbed, in view of the expressed
commitments of both major polit-
ical parties for comprehensive COW
erage under old-age and survivors
insurance, by the present situation.
Two matters should be clearly
understood. The Congress should
realize that this bill deferring a
statutory increase in contributions
toward existing social security
merely defers until next year the
necessary fiscal receipts to pay the
benefits. Also, 1t does not seem to
me wholly sound to enact tax law
and then defer the taxes year after
year.
Public Will Understand"
THE public will understand that
as a nation we are committed to
social security and will undoubtedly
increase and not decrease its bene-
fits Already some other nations
have larger degree of social Sc
curity than we. This bill in no way
modifies the benefits provided by
the present law. But it will be in
cumbent upon the next Congress
thoroughly to review the methods of
financing them.
AT an early date I plan to sub
nit to the Congress a comprehensive
plan for broadening and improving
the social security system. At that
time, hope that clear unuder-
standing of the Governments finan-
cial responsibilities for social Sc
curity will emerge and that long
term plan for allocating the costs
Of social security will be developed.
The Executive Branch of the Gov
eminent will always stand ready
then to assist the Congress in work
ing out a satisfactory solution.