The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1949-12-08
News und Views
-. By ALEXANDER S. LIPSETT, Gan ILNS Feature)

Senator Taft (Ohio) and Ives
New York; have come out in sup
port of a congressional study of
the question whether government,
instead Of private industry, should
provide all workers over 65 years
of age with a $100-a-month pen
sion. This brings us back to the OBJ
jections, previously aired in this
space, against pension plans on an
industrial or corporation basis,
plans. which powerful unions main
tain, are harmful to organized
labor as a whole and should be re-
placed with an adequate old-age
insurance system operated by the
government.
In Senator Taft's opinion, a uni
form federal pension Of 500 a
month to all persons over 65 would
cost $l2 billion year, but no such
sum could be paid out by any pen
sion fund accumulated on a sound
actuarial basis. The truth is, he
added with the penetrating know
ledge and bleak honesty which
even his enemies grant, chat the
only way pensions can be paid to
millions who have retired and are
not working is out of the current
earnings Of those who work. Those
earnings must be reached by some
form of taxation"
Following this line of thought,
the senior Senator from Ohio sug-
gested three means of taxation: a
payroll tax, paid by the employer
or workers, or both; a profit-share
tax, paid out of corporation earn
ings; general taxation on income
or sales. Whatever the means to be
used, the question, in Taft's words,
is whether our economy can stand
that tremendous burden without
deterfing industry as well as the
worker and reducing the workers
standard of living"
In addition to the basic tax plan,
Especial funds might be authorized
for particular industries and set up
in manner decided by the en-
ployers and workers in such indus
tries" This, roughly, is the now
prevailing system.
:. :. y
The pension issue, of funda-
mental import to the working peo-
pile of America, deserves careful
consideration by Congress, and
particularly by the Senate which
has before it House-approved bill
broadening the base and increasing
Social Security benefits. Legisla-
tion on national health insurance
and kindred problems points in the
same direction. In other words, the
state stands ready to assume ever
greater obligations of an economic
and social character, obligations
which our free enterprise system
Or private industry if you pre-
fer-is apparently unwilling or un-
able to discharge satisfactorily.
To what extent a government
ronstitutionally dedicated to the
free play of forces can safely, and
lasting harm, interfere
with the delicate mechanism of our
economic structure is a riddle that
lefies the best braintrusters of
aissez- faire. Certainly, it is
strange to find Senator Taft agon-
zingly contemplating support of a
Measure which, whether he likes it
,r not, makes private industry a
of government and
adds another notch to the powers
If the welfare state.
= j. j.
Mr.. Taft's warning against eX-
essive and crippling taxation are
lnquestionably justified. However,
is we'll to recall that present fed
,ral expenditures for public and
iocial welfare amount to only a
mall part of overall government
pending. $32 billion out of this
ears total federal budget of $42
'illion come under the heading of
Iational defense, international aid,
interest on government bonds, and
-eterans benefits. OF the remain
ne so billion for domestic pur-
roses, it is notew1thy-as stated
n this column some months ago
that Notwithstanding large
population increase, high price
evels and heavy social obligations
he domestic portion of the budget
; nnlu 20 nnrcnnt ornatnr than Il |