Evening star., 1949-04-24

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ton now proposes to carry it to
what is described as its logical
conclusion-is that every Amer
lean family Is entitled to full Gov
ernment sponsored protection
against such hazards of life as
sickness, unemployment old age
and death costs.
Costs Would Climb
To deliver on this guarantee.
those who work must undertake to
support those who for various rea-
sons do not work. BY the same
token, those whose income is high
or even moderately adequate must
dig deep into their pockets to help
out those whose earnings are low
In order to do this, large chunk
of the national income has to be
redistributed by the Government
through taxation.
The expanded social insurance
and welfare program will mean
steadily rising costs. Such costs
will eventually reach levels un-
dreamed of by the people and the
Congress when they first en-
barked upon the plan IA years ago
and still unrealized to this day by
the great majority Of Americans
The only way these immense
costs can be met is obviously
through much higher taxes.
1t is estimated-and 1t is an
estimate. largely concurred in by
Government statisticians - that
social security taxes under the
proposed program will amount in
the long run to what is equiva-
lent to a deduction of at least Is
per cent and possibly more than
20 per cent Of taxable payroll
up to $4,000 year.
This would mean Social
Security expenditure. piled on top
of all other costs of Government,
of from 10000, 900 900 to $685.
900 0.000, 900 q year. BY comparison,
expenditures for all purposes Of
Federal. State and local govern
ments in the United States during
the fiscal year 1867 the latest
for which such complete statistics
are available) hit a grand total
of $52,149. 900 900.
Actually, Government plan
ners propose to pay for con-
siderable portion of social secu-
rity expenditures out of general
tax revenue rather than payroll
taxes. But in order to make the
extremely involved mathematics
more understandable. it is easier
to refer to all such expenditures
rs payroll deductions or their
equivalent.
The cost will have to be borne
by everybody who is working and
earning a living. While a SUBJ
stantia1 part of the new tax load
will fall on those in the higher
income brackets, the expenditures
involved are so huge that they
will inevitably have to be spread
out. They will affect the pay
roll Of every businessman and the
take-home pay Of every wage
Garner.
No Free Riders
Nobody who is working would
get q free ride under the ex-
panded program. In fact, the
direct and indirect tax bill to be
paid by the average person in
return for the broadened social
services would be far beyond any
thing the American people have
been led to imagine.
But, by the very nature Of a
program where those best able
have to pay the most, people
whose earnings are low will be
the biggest benefjciaries. In a
system which redistributes wealth
in the form of social services,
they would actually get out far
more than they contributed in
taxes.
Whether people whose income
Is near or somewhat above the
average would, in the long run,
be better or worse of financially
than they are now is question
difficult to answer precisely. There
is no doubt that those in the
higher-income group would get
far less than it would cost them.
The American people are gen.
orally in favor of social security.
But they are not so enthusiastic
about having to pay for it. That's
one of the major dilemmas in the
sweeping program.
A whole Nation would under
take to lay something aside regu-
larly. month after month and year
after year, for rainy day-the
rainy day of illness. unemploy-
ment, old. age or death Of the
family bread-winner.
Millions Of people have always
done ~ On their own initiative,
through the exercise of thrift.
But millions of others have been
unable to do so, either because
of insufficient earnings or lack Of
will power to defer present enjoy
ment for future needs.
Timetable OFF
You are gravely mistaken If you
think that the / per cent de-
duction taken from your pay up
to $1,000 q year since 1897. plus
q similar contribution by your
employer, Is paying for your re-
tirement insurance and the pro-
lection of your family in case you
die. It isn't.
Not enly must benefits remain
totally inadequate under such q
tax rate, but In the long run II
will be impossible to pay them
ut all.
The Social Security Admins
tration knows 1t and has told
Congress about 1t q number OF
times. Generally. though. the