Evening star., 1946-07-15
Security Tax Increase
Essential Next Year,
Senator George Says

Chairman George of the SEN
ate Finance Committee said to-
day the social security tax must
be increased, adding that in his
opinion Congress will extend old
age insurance benefits to many
of the 100000 employed per-
sons not now covered
However. Senator George said a
general revision OF the social secur-
ity program probably will not occur
until next year. when Congress is
relieved of the pressures of recon-
version legislation.
This was the Georgian reaction
TO the House Ways and Means Com
mittee vote to freeze the old age
and survivors insurance tax for an
other year at per cent each on
employees pay and employers pay
rolls. The committee reversed a
previous decision to increase the tax
January l to Is per cent against
each.
FTVpOsAN heJeCteu.
The committee rejected the pro-
posals Of its special investigating
committee that the Federal retire.
ment system be revised to bring
Government employees under social
security regulations.
The rejected recommendations
called for Government workers TO
be brought uner the social security
system for the first time, while con-
tinulng on reduced basis under
the civil service retirement system
This would have meant reduced
annuity benefits for workers in the
upper and lower brackets and in
creased payments for those in the
middle wage scales.
Strenuous objections to the pro-
posals came from Government en-
ployes groups who charged that the
Social Security Board backed the
plan in an attempt TO eventually
take over the entire civil service
retirement system The unions tes-
titled before the House group that
the Federal retirement system is the
most liberal system of its kind.
Another reason for opposition of
Government groups to the proposals
was the fear that Congress at some
future date might decide the social
security retirement system is the
only protection Federal employees are
entitled to, and would scrap the
Civil Service Retirement Act
Previous Decision Cancelled.
The committee also Cancelled a
previous decision TO put up more
Federal dollars for the needy aged
/ blind and dependent children in
those States with income below the
national average. This would have
meant that in many States. particu-
larly in the South, the Federal Gov
ernment would put up 50 for each
State dollar for these persons.
Under the committee action, the
Federal Government and all States
will continue to participate on a
$3.50 basis.
Committee members said the
eleventh-hour reversals were nee
essary to head off a fight on the
Townsend oldage pension plan and
get through any Social Security bill
at all before Congress adjourns for
the summer
Provisions Listed
The revised bill. expected TO be
pressed through immediately, pro-
vides.
l.. Survivors insurance protection
without cost. TO families of World
War II veterans for a period OF three
years
2. Coverase for 100000 maritime
workers under the unem ployment
compensation provision of Social
Security
3. An increase from $40 to s25 a
month in the top amount the Fed
eral Government will put on a So
so matching basis with the States
for the needy aged blind and de-
pendent children. This makes the
top these needy can obtain $50 a
month instead Of the present $40.
Bill Is Revised.
The committee revised its bill when
A controversy prevented bringing the
legislation to the House floor under
rule barring amendments. With
out such rule it was expected that
the Townsend plan would be offered
as an amendment The revised bill
now is expected to 60 to the floor
with amendments restricted.
Senator George told reporters it
Is all right to freeze the security