Evening star., 1950-04-25
The Political Mill
The Political Mill
New Social Security Ill
Likely to Become Low
Measure Viii Be Major Item
In Trumon Domestic Proarum
By Gould Lincoln

The social security bill. increasing the
number Of persons covered by the system
and practically doubling BENEFITS Of old
age and survivors insurance. gives every
promise Of being written into law, II has
passed the House. and within a week or
two is expected to be reported to the
Senate from the Senate Finance Com
mittee.
The measure. when it Is enacted. viii
be the major item Of the Truman do
mestic program put through by the
slst Congress during It's present session.
AS a matter Of fact the bill is being
handled without extreme partisans;lip.
in either house. It's passage. however.
will be a feather in President TrumanS
cap. Outside of this measure and pos
sibly continuation Of the Federal rent
control act for another year from june
80, the rest of the Fair Deal program has
little chance Of enactment-and most OF
1t will become the issue in the congress
sional campaign.
Voluntary FEPC Bill.
The only civil rishts bill which the
administration leadership is planning
now to bring before the Senate is the
FEPc bill-which passed the House as
a voluntary" and educational measure
instead of the compulsory law demanded
by the White House. The Senate is ex-
pected. II it votes at all on FEPC. TO
follow the line of the House bill. which
would be a victory for Senator Taft
rather than for President Truman.
Because the social security bin will bs
passed with Republican as we'll as Demo-
cratic support. however. does not mean
that many Republicans and some Of the
Democrats are satisfied with the existing
system. There is strong prospect there
will be written into the pending bill by
the Senate Committee and the Senate
a provision for a thorough study Of the
social security system particularly with
the idea that it would be wiser to adopt
a "pay-as-you-go" system-whereby the
beneficiaries would be paid each year
from the collection Of revenue. leaving Q
small surplus to meet unusual con-
tingencies. The revenue might be derived,
it is suggested. either from the social
security payments. partly from en-
ployes and partly from employers. or
from direct taxation generally applied.
The Senate committee has not had
either the time or the facts to propose
any change in the syStem-and there.
fore the demand for a real study will DO
made. At present the social security
funds are derived from payroll taxes.
Ia per cent by the employer and la
per cent by the employe. An increase
in the tax from ! per cent began the
first Of this year. The yield Is far more
than the payment OF benefits. even with
the proposed increases in the benefits
and probably will continue So for some
ka hot
may be made. to postpone the date for
an increase to 2 per cent-in this legis.
lation.
Stand Taken by Opponents.
Opponents Of the present system insist
that it is not honest. since eventually.
with higher benefits and many mere
beneficiaries to be paid the men and
women who have been participating for
years and making their contributions
through the tax. may be taxed again TO
help keep the system operating. Also.
under the present system. the funds coll
lected are not earmarked for the social
security system; they are paid into the
general Treasury funds and are expended
for any other purpose that requires
money. No reserves are retained. The
Government gives its lou for the
system, and presumably will always be
ready and able to meet the old-age and
survivors insurance and other payments
under the law.
Senator George of Georgia. chairman
Of the Senate FinanceV Committee, has
announced the decisions of his commits
tee on "coverage." provided IN the bill.
The House bill extends additional cover.
age on a compulsory basis to spproxi-
mately million persons not now
covered by the old-age and Survivors
insurance, and voluntary coverage would
be available to about four million State
and local employees through Federal
State agreements. The Senate committee
has extended coverage on a compulsory
basis to about the same number as does
the House bill. but voluntary coverage
would be available only for the l Va mill
lion State and local Government en-.
ployes not under o retirement system