The Waterbury Democrat., 1944-12-04

titled when you retire at 65, or thereafter?
 It's ike this. A life insurance com pany must operate on the theory that it will go out of business some day. When that time comes, tomor- row or in the year 3944-the com pany must have available sufficient cash and securities to meet every obligation ts its policy-holders If it does not, it has no way to finance the deficit.
 But the Government of these United States is assumed to be im- mortal and eternal. If ever it should cease to exist, the crisis would be so catastrophe that the mere loss of old age benefits wouldn't be no- ticed.
 Moreover, the trust fund is in- vested exclusively in government bonds, on the nchallengeable theory that they are the worlds safest in- vestment. If ever this Government were put out of business and had to liquidate its old age obligations all at once, the bonds in the trust fund would be worthless pieces of paper, and the reserve would have been created in vain.
 RESERVE WON'T BE NEEDED FOR A LONG TIME
 Again, the reserve, now around six billion dollars and growing fast, will not be needed to pay old age bene- fits for many years to come. Through June 30 of this year the trust fund had received more than $5,700, 100000 and had spent, in- cluding administrative expenses, only $670,0OO,oOO. Interest alone, $405, ,000, ,000, was almost enough to care for the $544,000, ,000 in benefits an refunds.
 The funds experts calculate that it will be between 1870 and 1880 be- fore benefit payments begin to use up each year all of the premiums (taxes) provided for in the law as it stands.
 At that time or soon after, one of three things would have to be done. Either reserves could be depleted an unsound mother if the reserve system is to be retained or the premium (tax) rate could be raised above the top Of per cent (half from the worker) now provided, or Congress could make up the deficit out of revenues from other sources. THE MONEY IS USED
 FOR CURRENT EXPENSES
 The question is asked, then: Why bother with fiction of reserve? AS it is, your old age insurance pre- mium (taxes) are used by Uncle Sam to meet his current needs, and are replaced with his IOU's. The re- serve isn't money, there isn't that much money. It's just some pretty pieces of paper that say the United States will give the trust fund money fNr them some time in the future. When that time comes, the Treas ury will have to tax, or torroW from somebody else, to get the money.
 Why not, asks this Sc' Jol, raise what is convenient by the payroll tax and stop pretending that it is 11SSCsSodlJs VI CFC4A ACoA1 oNAO, OAA"V Uncle Sam shoLle operate his in- surance business as though he were mortal and might go out of business some day?
 If it is decided to keep Old Age Insurance on the self-sufficient re- serve basis, then you can bet your bottom dollar that no board of ex- perts with regulations to protect will recommend against stepping up the olG age tax right away, quick, before the trust fund shortage gets any bigger.
 If the tax isn't raised, whatever you may be told you can gamble that it will be because Uncle Sam has decided to use the tax as just another source of general revenue, and to worry. about the money for your retirement income when you cal! on him to make good his promises.