Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-08-29

/. A $3.2-billion foreign-a
economic aid to friendly coun-
tries.
2. Legislation permitting re-
auctions in some farm price
supports and forestalling sched-
uled acreage cutbacks for cot
ton and rice next year.
First Raise in Years
The President explained his
views on the social security
legislation as he signed into
law the first major increases in
social security benefits and tax
rates in several years.
1t means that benefits being
received by about IL million
persons under the old age
survivors and disability insur-
ance program of the social Sc
curity system will rise by 712
per cent next February. At the
same time the tax on employees
and employers will go up from
"a per cent to 212 per cent.
And tax will be based on the
first $4,000 of annual earnings
instead of the first $4,000.
Mr.. Eisenhower said the in
creaSes in both benefits and in
the tax base of the old age, sur
I vivors and disability insurance
. programs "are desirable in the
; light of changes in the econ
omy since these provisions were
last amended in 1854"
He also described as "desir-
able" provisions in the measure
which will permit Federal sup
port for child welfare services
where needed in urban areas.
Matching of Costs
Even in the public assistance
phase of the measure, he found
one thing to praise-the prin-
.ciple of varying Federal match
ing of costs in accordance with
the relative fiscal capacity Of
each State.
But he noted that the effect
of this change is very limited
because the formula used re
suits only in increases in the
Federal share"
Successive increases in thu
Federal share of the costs o.
the relief programs during thu
past IL years, the Presiden'
said, have raised the Fedora
share from about As per cen
in 1916 to an estimated So!
per cent under the new law.
Weakens Responsibilities
Such increase, he asserted
"can lead only to a weakening
of the responsibility of thu
States and communities"
He said he is asking Secretar!
of Health, Education and Wei
fare Flemming to deal spe
officially with this problem il
the review of the public assist
ance programs which is nov
under way"
The tax increase on employee:
and employers, effective Janu'
airy /, will bring in a maximum
of $3.50 a year from each person
compared to the existing $94.50
The rate would go up to
per cent in 1860, to 3l2 PEI
cent in 1868. to 4 per cent II
1866, and to Az per cent il
1869. The social security ta1
on Self-employed persons GOV
cred by the system would in
crease from 33s per cent Il
334 per cent on January /.
Monthly Payments
The increased benefit seal,
would give retired employee
monthly payments ranging
from $33 to $116 instead o
the present $50 to S10S.5O
Maximum family benefits woult
increase from 1920 to 1884.
The $3,298.O92. 500 Mutua
Security Act for the fiscal yea
ending June 80 was a down
the-middle compromise ham
mered out by Senate Hous
conferees at a four-hour meet
ing on the rfnal night of tn
congressional session.
The total still fell more thai
a652 million below the amour
requested by Mr.. Eisenhower
The House voted for $3,078,
092.500. The Senate raised /
to $3,518,092, 500.
AS signed by Mr.. EiSenhowe
today. the $3.2 billion measur
dug deeply into the Develop
ment Loan Fund. It receive
only $500 million instead of
requested $625 million.
The $I.5lS.oOO.OOO for mill