Evening star., 1950-01-09
President Seeks Levy
For Health Insurance
And Social Security
Continued From First Page.)

the downward trend in expendi-
lures from 1850 to 1851 may be
expected to continue.
Sound Basis, President Says.
"This financial program pro-
vides a sound basis on which to
proceed. 1t will properly support
the extraordinary responsibilities
of the Federal Government both
at home and abroad, and at the
same time meet our obligations to
pursue a policy of financial prud-
ence and restraint. Such a policy
must be directed at producing a
surplus as soon as possible under
favorable economic conditions.
The reductions in expenditures,
which I recommend, can be
achieved and still permit our
Government to carry on its nee
essary operations effectively. The
moderate increase in revenue,
which I shall recommend in con-
junction with specific tax reforms.
can be achieved without impairing
continued economic progress"
In renewing the drive for COM
pulsory health insurance, one Of
the principal planks in the Fair
Deal program. the President Is
paving the way for another battle
in Congress, where this long
standing proposal has failed to
make headway.
Explaining that a period Of
preparation" is necessary to set up
the system, the President asked
that a pay roll tax of one-fourth
of l per cent, applied equally to
employees and workers, be put into
effect January /. 1851, to give 1t
q start.
Would Raise Tax Rate.
For Social Security extension,
which covers the old-age and sur
vivors pension system, the Presi-
dent proposed that the rate be
stepped up, and the base on which
it is figured be increased from
the first $4,000 of wages earned
to $4,000. The rate went from
! per cent each on employers
and workers to 112 per cent on
January /, and the President rec
commended that it go to per cent
next January. instead of a year
later, as now contemplated.
He wants farmers and self EN-
ployed covered; benefits increased,
and disability payments provided.
The House already has passed a
measure on which Senate action
is pending.
About IS per cent of all en-
ployed people would be brought
within the system, under the
Presidents plan, which he said
would gradually reduce the need
for public assistance" Meantime,
he urged that Federal grants to
States for public assistance be
extended and improved"
Welfare Costs Raised.
In all, the President wants a
social welfare, health and security
program-which also covers help
to blind and dependent children,
public health and vocational re-
habilitation-to cost $2,714,000,-
900, as compared with estimated
costs Of $2,297, 900, 900 this year.
, Along the same line. the Presi-
dent recommended that the rate
and duration-which vary with
the States of unemployment
compensation, be increased, and
that Government employees get
coverage along with other groups
not now protected. A tax on en-
ployers finances this feature.
Cabinet status for the Federal
Security Agency again was called
for by the President. He was de-,
feated in a move to get this change
In the executive set-up In the last
session of Congress.
Funds for Education Asked.
In the field of education, where
he asked for a $455. 100000 au-
thorization next year. and an ex-
penditure of $434 900 900, as COM
pared with $125,000,000 this year,
the President recommended that
$1,000,000 be given to start a pro-
gram under which the youth OF
the Nation could receive collegiate
training that would not be other
wise available to them. He said
that several States are developing
community institutions" for this
purpose, and that he had in
structed the Federal Security Ad-
ministrator to see what the Gov
ernment can do to stimulate this
community college" program.
The President asked again for
general legislation" on education
another effort that failed In the
last session Of Congress when the
House got in a row over making
aid available to parochial schools.
On housing. where the President
wants to spend $1.329, 100000 in
1851, as against slightly more than
81 900 600, 900 this year. he renewed
his recommendations for meeting
the needs Of middle income groups,
and for the continuation of rent
controls.
Would Cut Farming Outlay.
On the farming front the Presi-
dent proposed q cut Of nearly half
a-billion dollars to $2.206. .000, 900
for next years outlay. He said that