Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-02-04
What Price Security?

w US INV SSSSs'e/'
In Security for YOU
Funds Held Ample to Pay
Benefits" Ray Henry stated:
"A number of articles rails
ing doubts about the finan-
cial soundneSs Of the Social
Security System have APP
peared recently. AS Q result
I've received many letters
from old people alarmed
about what they've read and
fearful about losing their
social security"
He then sets out a series
of questions and official So
cial security answers to allay
the fears Of these millions Of
old people. These answers,
likewise Of great concern to
the multiplied millions Of
contributors. state in part: Il
don't think anyone need be
concerned about getting the
payments due him. Com
gress has provided for in-
creases in the social security
tax every i've years until 1851
80. No one can predict pre-
else dollar figures for a pro-
gram so big and subject to
so many variations. But we
have estimated payments will
amount to about $375 million
more than our income in
1858. In 1853 we estimate
that payments will be about
$500 million more than in
come. The law calls for
an automatic tax increase in
1861"
Present benef1ciarieS may
get some comfort from as
surance that present deficits
are to be met from future tax
increases. but when and how
much these increases will be
is Of vital concern to the con-
tributors.
The future tax increases
Congress scheduled In 1856
for 1860 and at ensuing f1ve-
year intervals, were based on
intermediate cost-high en-
ployment assumption" esti-
mates that receipts would ex-
coed expenditures by $1,000
million in 1856. $3.50 million
in 1857. $3.50 million in 1858
and 1921 million in 1861
total Of some $2.7 billion.
What has happened so far,
however, is that the ex-
cess for 1856 was 1924
million less than estimated
and for 1857, instead Of
the estimated $3.50 million
surplus. there was a Sl27
million deticit-a difference
Of over 81 billion. The newly
revised estimate for the pres
ent year indicated in one Of
the official answers is a 1915
million deficit instead Of the
prior estimate of a $500 mil
lion excess of receipts over ex-
penditures. and for next year
the revised estimate is for a
$500 million deficit instead Of
a 1921 million excess. For the
four-year period 1869. in
elusive. the revised estimate
is that instead Of the opera
ton showing a surplus of
some $2.7l1 million, it will
show a deficit of some S608
million. OF course. the present
estimates may miss the mark
the deficit could be very
much greater.
The timing and amounts Of
the scheduled 1860, 1865. 1870
and 1875 tax increases were
based on the 1856 estimates,
and may thus prove to be far
too little and too late even
though the present tax rates
are scheduled to be almost
doubled by 1875.
These observations may not
be Of concern to the present
aged. as current deficits do
not mean they will not be
paid their benefits in full, nor
are they made in criticism of
the actuarial estimates, as
the actuary from time to time
has made abundantly clear
that estimates must, at best,
be merely illustrative Of the
mathematical results Of his
assumptions Of future eco
nomic conditions, etc. But
they do vitality concern the
social security contributors
who face the increasingly
heavy burden Of paying what
ever taxes may hereafter
prove necessary to finance
the benefits.
$1,000 rI.tL.A