Evening star., 1949-02-22
Home Relief
Program Faces
Sharp Battle
Lawmakers Predict
Aid for All Needy
May Be Defeated
BY the Assoeiofsd Press

BY the Assoeiafsd Press
Lawmakers gave their answer
today to President Truman's re.
quest for a vast expansion of the
social security system: Some Of
it may pass-but not the whole
thing.
The bill Mr.. Truman sent to
the Capitol yesterday proposed:
ca Providing direct "home relief"
TO all needy persons; Co blanket
ing 100000 more persons under
old-age insurance: Co greatly in
creasing the benefits; Cd raising
in some cases tripling-the tax
on pay checks and payrolls.
It was the "hone relief" idea
which ran into the closest scrutiny
in Congress.
Top Democratic managers Of
security legislation - Chairman
Doughton of the House Ways and
Means Committee and Chairman
George of the Senate Finance
Committee-took no position on
the bill.
The program calls for an in
crease in payroll taxes from the
present $1,800,000,000 for old age
and survivors insurance to about
sc, 900. 100000.
Taxes to Rise 100 Per Cent.
1t would boost individual pay
roll taxes 100 per cent or more.
The tax on a person making $4,-
300 or more could be increased
from a top of $50 to 500 a year.
The expanded insurance pro-
gram would cover 50,000,000 per-
sons.
Members of Congress said they
had no idea how far the unprece-
dented home relief" program
could 60 or what the overall cost
would be.
Under this phase. the maximum
payment in which the Federal
Government would participate
would be $50 a month for one
person, $50 for the first additional
person in home and $40 for
each additional person. States
would contribute 40 to rs per cent
of the cost. according to State
wealth.
Such assistance from the Fed
eral Treasury's general fund, OUT
side the insurance program, now
is limited to needy aged persons.
the blind and dependent children.
It now costs about $1,000.000. 900
a year.
Denies knowledge of Plan.
Mr.. Truman, in response to q
question at his news conference
last Thursday, said he never had
heard of proposal to give home
relief" to all poor people.
The new bill proposes one other
departure: Disability insurance.
under which employees covered by
old-age insurance would get Short
time sickness benefits.
Mr.. Doughton introduced the
Presidents legislation. But he
told reporters he did this at Mr..
Truman's request and, that he is
not sponsoring the bill.
Like Mr.. Doughton, some top
Republicans - including House
Minority Leader Martin and Sem
ator Millikin, Republican. of Colo
RADIO, refused comment on the
measure.
But Representative Taber, Re-
publican, of New York, who guid-
ed appropriation bills when Re-
publicans controlled Congress, had
this to say:
"As far as the Social Security
Act goes, if the people want to tax
themselves double. that's one
thing; but I'm not in favor Of tax
ing the people generally to pay any
more gratuities to anybody unless
it is a direct obligation Of the
Government"
Home Relief Passage Doubted
Other members of Congress.
talking informally, expressed par
ticular doubt as to the enactment
of the home relief program. They
foresaw strong objections. too, to
increasing taxes on wages and
salaries.
The President will send legiSla-
ton to the Capitol later for a Ma
tional health insurance program
and for expansion of unemploy-
ment compensation. There are
some estimates that the health
program, with the Government
paying doctor bills, would mean
about $6,oo0,o0o,0OO in payroll
taxes.
Mr.. Truman recommended
boosting the present / per cent
payroll tax for social security,
collected from employees pay and
employers payroll, to 112 per
cent each next July / and to 2
per cent next January 1,"with the
tax to be applied against the fist
$4,000 of a Workers income in
stead of the present $4,000.
The contribution rate of the
self employed to be brought into
(See SOCIAL SECURITY. P. A-6.)