Evening star., 1949-06-16
Compromise Expected
To Scale Down Boosts
In Social Security Bill
(Secorld OF a SeriesJ
By Gould Lincoln

toCCOf%0 " oCFNSD
By Gould Lincoln
The administration social Sc
curity bill. dealing with old-age
pensions and survivors benefits,
proposes large increases in the
payments to beneficiaries.
The probabilities are that,
when the bill is reported to the
House by its Ways and Means
Committee, there will be a COM
promise between existing rates
and those proposed by the ad-
ministration, but the committees
new rates will be far closer to
those proposed by the administra-
ton than to those In the existing
law.
The administration has pro-
posed also that the tax rate be
increased to ~ per cent July l
and to 2 per cent next January /.
Under existing law l per cent
each is paid by employe and en-
ployer, until next January /. Then
the tax is to 60 automatically to
IN and to 2 per cent on Janu-
ary !, 1852.
Fight Over Tax Increase.
It Is expected that the House
committee will let the tax rate
remain as it is in the existing
law. Notwithstanding the fact
that the benefits are to be largely
increased.
Republican members OF the
committee, 1t is understood. are
demanding increases in the tax
without delay on the ground that,
II the insured are to have greater
benefits. they should pay more
for them. Further. the charge Is
made in some quarters against the
Democrats that they are intent On
providing larger retirement bene-
fits, without an increased tax be-
cause congressional elections come
next year. Tile Democrats, it Is
said, wish to put off dealing with
an increased social security tax
until after the campaign of 1850.
That, at least, Is what some Of the
Republicans are saying.
To this the Democrats reply
that the Republicans have de-
claimed loudly against increasing
taxes at this time. They add that
the Republicans in the 80th Con-
gress, with last years election
coming on. made no move to in
crease Immediately the payroll
tax for retirement pensions and
survivors benefits, but froze the
rate at / per cent for both the
years 1e48 and 1949 and left the
increase until 1850.
Would Tax $4,S00.
The administration bill proposes
that the social insurance tax from
now on be paid on the first $4,000
Of wage or salary received during a
calendar year, instead OF the first
$4,000 under existing law and the
$4,000 be the maximum income
for benefit purposes.
Stilf another proposed chance
is that q woman worker may re-
tire and become eligible for old
age benefits at go instead Of IS
years. The age Of IS is set for
retirement benefits for both men
and women In the present law.
Also under. the administration
proposal, q widow may obtain
survivor benefits at the age Of 60.
instead Of waiting until she Is IS.
The committee is expected to
modify the proposal to levy the
tax on the first $4,000 Of wages
or salary, bringing it down to $4.-
200 or $4,000. There also is a
compromise under consideration
for the age at which women shall
become eligible for social insur-
ance benefits either as retired
workers or as survivors. The COM
promise age may be g..
Under existing law. monthly
benefits are computed as follows:
The monthly amount is 40 per cent
of the first $50 of average wage,
plus 10 per cent Of the next 5000,
which is still further increased by
I per cent for each year Of COW
erage. The administration bill
makes the computation as follows:
The monthly amount (of benefit)
is so per cent of the first $75 of
average wage, plus Is per cent Of
the next $325, increased by per
cent for each year of coverage. The
committee probably will modify
this formula.
Benefits Would Be Doubled.
The administration bill. If en-
acted into law. would nearly double
the monthly benefits in some
brackets, depending on the num-
ber Of years a worker had been
covered. The benefits under the
committee bill, 1t is expected, will
be somewhat less, but the increases
will be material.
The difference in the size Of the
monthly benefits under the ad-
ministration bill and the COM
promise, as well as the differences
between these programs and the
existing law, it is said. will become
mora yoarkad aS the number of |