Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-04-09
Disputes Mr.. Altmeyer's Claim

Disputes Mr.. Altmeyer's Claim
To the Editor Of The Star:
ThissiS In answer to the letter from Com
missioner Al. Altmeyer in The Star of
April Z. The Hoover Commission was en-
tirely correct in stating that advocates Of
social security have given wide publicity to
benefits and little to the costs thereof. It is
| true that the Commissioner has testified on
numerous occasions before congressional
committees that old-age and survivors insur-
ance benefits will prove costly. Such testi-
mony does not constitute giving wide public
ity to the excessive costs Of social security.
Few persons attend such hearings AS for
the processed actuarial reports, their circula-
ton Is limited and only the experts can
understand what they means
Hearings have been going on daily for
weeks before the House Ways and Means
Committee Commissioner Altmeyer has
been elusive. Repeatedly members OF the
committee have asked him what would be
the long range costs for the total social Sc
curly program as planned by the Social Sc
curity Administration. Mr.. Altmeyer will not
reveal those figures. However, If one puts
together the cost figures for the several pro-
posed cash benefits programs, plus realistic
cost estimate for the national compulsory
social security medicine plan. plus the cost OF
an expanded program OF public assistance
for the needy, one arrives at total cost esti-
mate for the mature program OF something
like $50. 900 .o0o.0 900 to 10000. 100000 year
or more.
Trust Fund Not Intact.
The insurance programs alone, not count
ing the public relief. are expected to rise to 20
per cent or more Of payrolls 1t is conceiv-
able that the present social security tax OF
l per cent on employees and per cent on
employers could be raised to as much as
per cent on each. Self-employed persons
Farmers, shop keepers, lawyers. physicians.
etc. would in time pay upwards OF per cent
on their incomes lone and one-half to two
times as much as employed persons for the
benefits received. The deficit, amounting to
8 per cent or more Of payrolls, would have to
be paid for out Of increased income taxes.
It has come out at the hearings that the
so-called old-age and survivors trust fund OF
about Sill 900 900 900 has not been kept in
tact, but has been spent by the Government
for routine general operations. IOUs nave
been substituted for the cash supposedly
kept In trust A few years hence, when aged
workers on retirement seek TO obtain their
benefits, the Government viii be compelled
to get the money from the general fund by
taxing the public again, that time through
their income taxes.
The law requires the three trustees OF the
OASI trust fund to file a report on the first
day OF Congress each year regarding the
status of the fund. Congressman Doughton.
Democrat, of North Carolina, and Reed. Re-
publican, of New York, today were sharply
critical of Secretary Of Labor Tobin for the
failure of the trustees to file this report.
The trustees are the Secretary Of the Treas
ury. the Secretary Of Labor and the Federal
Security Administrator.
Wants Truth Told People.
One of the most important things that has
come out at the hearings on H.R. 1898 for
the expansion of social security is that
persons may pay their social security taxes
for 40 years and still not be entitled to q
retirement annuity. The members Of the
Ways and Means Committee had not under
stood that. and 1t is fair TO say that the
people Of the country do not so understand.
Social security does not provide retirement
annuity In which the worker has vested
interest by reason Of taxes paid. The worker
is compelled at the present time TO retire
from the labor market and III he earns as
much as s14.9o In covered employment In
any month. he Is deprived Of his social
security annuity for that month. Social &C.
curity IL q delusion and . snare. Its true
workings and long-ranss costs have mot been