The journal. (Caldwell, Ohio) 1934-1961, 1949-05-26

ildIhGl, uGpIGSSlUll Is OIl llS way :
We help ourselves by helping the
aged. BY helping them become
buyers in the marts of trade, we
help ourselves remain prosper
Gus because we help protect the
health of the market.
Ways And Means
I have urged the Ways and
Means Committee of the HCuSe
of Representatives to examine
with care HR 2134 and HR 2l36,
now before this session Of Con-
greSs, and to report one of them
with such amendments as may be
wise and desirable. They call for
a national insurance system COW
ering all the people and provid-
ing liberal enough annuities to
make healthy purchasers of those
no longer wanted by industry.
The bills are identical; one was
introduced by Congressman John
A. Blatnik, Democrat of Mime
sofa the other was introduced by
Homer D. Angel Republican, of
Oregon.
These bills embody the major
features of the original Townsend
Plan, namely a three per cent
gross income tax from which
would be paid pension to every
eligible person over sixty years
Of age. Contrary to popular opin-
ion, the Townsend Plan does not,
and never did provide, a 5000
per month pension. 1t provides
that the money collected in one
month will be distributed three
months later to those persons
who are eligible to receive it.
These bills provide for an ade-
quate pension on a pay
go basis. In good times, when
prices are high, the pension
would be greater. In bad times,
when income and prices are low,
the pension would be less.
Great Advantage
The great advantage Of this
system is the elimination of So
cial Security taxes and reserves.
To date eleven billion dollars
have been paid in social security
taxes. This money is invested in
government bonds. In a few
more years this reserve will be
over 100 billion dollars. This
means that when a worker is
ready to retire all the people
must be taxed to pay the bonds
to get the money to pay the So
cial security benefits. 1t means
double tax for every pension
paid. How can we be sure the
money can be raised 20 years
from now by normal taxation?
The only safe step is to put the
whole pension system on pay
as-yOu-go basis and make all per-
sons, including farmers, eligible
for the pension if their income is
below a specified amount. That
amount is not stated in the bill,
but should be inserted in accord
ance with the judgment Of the
Ways and Means Committee or
the Congress.
Furthermore, this system will
make it unnecessary for the
states to tax its own people for
approximately One-half Of old
age pensions, as all states must
do under the present law In
Ohio alone this would save thirty
four million, six hundred and
eighty-three hundred thousand
dollars in taxes. This amount
would , permit Ohio to give
teachers a real raise, contribute
fully to distressed municipalities,
replace condemned school build
ings, and balance the state bud
get. In ten years Ohio would
save three hundred aind forty-siX
million, eight hundred and thirty
thousand dollars.
A national system of Old Age
Security is certain to come and
the sooner it is adopted, the bet
ter it will be for the nation as
a whole. Such a system will in
clude millions not covered by So
cial security, it will eliminate the
tremendous reserves being built
under the present law, it will
produce sound economy by pay
ing the bill as we go, and it will
provide an adequate pension for
all who deserve it. | hope this
Congress will act.