Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1949-03-31
Who'd Paw the Bill?

~ MANS proposed social Sc
curity amendments be passed by
congress, what would be some Of
the results and who would pay the
bill?
Here's what would happen: On
July /. of this year, the employer
would take from each employees
pay envelope y per cent of his
pay The employer would add to
that another W per cent as his
part
AS an illustration. let US presume
the employee is paid $50 a week,
and is employed in sewing mach
inc plant. Let's say the normal
price of the machine he is produc
ing is $50 and he is credited with
producing two machines each week.
When that rs cents is taken from
his pay envelope he would object
and demand a full $50 as weekly
take home" pay, and, to prevent
a strike, he would get the raise and
the employer would pay both the
employers and the employees
payroll tax, amounting to $l.50
week, on the production of
two machines. or rs cents per ma
chine.
THAT TAX, being part of the
construction cost of those machines.
would be added to the selling price
to the wholesaler. 1t would mean
rs cents added to the manufacture
er's price of each machine, making
it $3075 per machine to the whole
saler. That is initiation.
The wholesaler has en-
plOyees, too. He, too, would
take ~ per cent from each
employees pay envelope. That
employee, too, would demand
and get a 75-cent-a-week raise
that his take home" pay may
remain at $50 per week. The
employer also would add an
other IL per cent to that of the
employee as his share of the
payroll tax. Thus, the whOlesal-
er would add IS cents to his
cost Of operation and add that
IS cents to the price of sew
ing machine that now sells at
S31.50. That is more initiation.
The retailer would have the same
experience as the manufac turer
and the wholesaler and would up
his price to the consumer in order
to offset his increased cost created
by that payroll tax. The sewing
machine which normally would be
sold to the consumer for $50 now
would sell for $32.25. all of the
increase Ebeing taxes. The payroll
tax would be responsible for the
inflated price and the consumer
would be doing all the paying. The
consumer would be paying for
checks those employees would. in
time, receive from social security.
THOSE WHO receive social Sc
curity checks now, or will receive
them sometime in the future, loud
ly acclaim the Presidents proposal
to increase the payroll tax and to
increase the amount of those
monthly payment checks. They do
not think of the inevitable result
of such proposals on the dreaded
national inflation-or who is do
ing and will continue to do the
paying.
1t is question Of how much
of such taxing and paying the
nation can stand. Today, just
about One-third of each income
dollar received by each of us is
taken away by taxes. Much Of
1t, like the payroll taxes pro-
posed, Is hidden and we do
not fully realize who pays them.
They constitute major portion
of what we call the high cost Of
living. They represent initiation,
those high prices for everything
we buy and about which we
are bitterly complaining.
Enactment of the Presidents pro-
posals into law would mean more
and higher prices and more infla-
ton.
THE ADDED COST, when ap-
piled to but one item of mer-
chandise does not seem much, but
the total is staggering and we con-
sumers will pay all of that vast
sum. AS an average, taxes-local,
state and federal-are taking from
each average family OF five around
800 year, or an average of $500
for each individual. Some portion
of that is included in the price Of
every thing we buy.
The proposed additional payroll
tax would be added to what we are
now paying and we will pay it in
the same way. as a part of the
price Of everything we buy, wheth.
er It be a sewing machine, an auto.
mobile, a refrigerator, a suit OF
clothes, shoes, food or any neces-
sity or luxury. Do we want to pay?
The Los Angeles Times found a
new way to Illustrate what the ex.
pending Of billions on the part Of
government means to the American
people. Last year the production
oil all California mines. including
oil, amounted to value of 81 .O99,-
1OS,OOO. The California budget for