OLD AGE PENSIONS IN UNITED STATES

Grey River Argus, 12 August 1935, Page 5

OLD AGE PENSIONS IN UNITED STATES

ITS GREATEST SOCIAL EXPERIMENT Roosevelt’s Social Security Bill Passed

''Aus. and N.Z. Cable Assn.) (Received August 11, 6.30 p.m ) WASHINGTON, August 10. -Ihe United States Senate completed ‘to-day on the Social Security Bill, the keystone of President Rooscx elt s whole programme of social refoim, and sent it to the President for signature. The chief provision of the measure provides for the old age pension. It is to be contributed by employers, or by employers in conjunction with employees, under the supervision of the Federal Social Security Board. The Government is making -an initial outlay of ninety-five million dollars for the pensions, after which the various benefits must be self-supporting. WHAT THE BILL PROVIDES. AID FOR AGED. POOR AND BLIND (Received August- 6.30 p.m.) WASHINGTON, August 9. The United States Congress has now granted the Roosevelt Administration the authority to embark on the most extensive social experiment in the history of the United States that is intended to safeguard millions, in their old ago- and times of stress. The Social Security Bill has received its final Congressional approval in the Senate without a recorded vote, thus ending seven months of turbulent debate and backstage negotiations. This Bill imposes the greatest tax burden that has ever been approved by Congress. It provides both old age and unemployed benefits for an estimated total of twenty-five million workers, and it also appropriates millions of dollars for the aiding of handicapped mothers and children.

Many of Congress have forecast that part, or all, of the Bill would be invalidated by the Supreme Court. The section that is most frequently challenged, on constitutional grounds, is one which authorises the creation of a nation-wide old age pension fund, by the levying of a three per cent, flax on the employers and the employees, or against the salaries of workers up tio three thousand dollarq per year. This fund,, it is esUmated. wil> by the year 1980 reach a total of fifty thousand million dollars. It is expected to provide pensions for retired workers of sixty-five rears of age and over, up to a sum of eighty-five dollars per month.

Supplementing this relief, ihe. Federal Government would offer grants of fifteen dollar's each 'month, this tp be 1 matched by the States, for all of the ,- needy aged .who are not taken care of - under the contributory system. Similar grants will bo also made r for the blind, regardless .of their age. : The Government is also making” a ■ levy of three per cent, of the payroll - tax against tbe employers of eight or i more persons, out of which'deductions i can be made—up to ninety per cent.— . for payments to State unemployment 1 insurance schemes. 5 Those two payroll taxes are esti- - mated to yield three thousand million dollars annually by fh e year 1950. RELIEF WORK STRIKE. > IN NEW YORK. (Received August 11. 7 p.m.) NEW YORK. August 10. Long-smouldering dissatisfaction i with the Government’s administration of relief manifested itself to-day when - the Central Labour Council ordered ■ fifteen thousand union men employed ' .on Federal relief enterprises to strike ' in a. protest against the- wage scale. While this strike, which was sauetioned by the American Federation of Labour,, is at present- confined to New York, there are indications that the movement is likely to spread to relief workers in key cities throughout the coun.try. Tax the Poor I SENATE ALTERATION. TN ROOSEVELT’S BILL. « (Received August 11, 6.30 p.m.) WASHINGTON, August 10. The United States Senate Committee ha s completed ‘the revision of Mr Roosevelt’s tax programme, broadening the base of the House measure- as cabled on August 5, so as to include increased levies on the citizens with small m elans. Under the proposed schedule, a relief worker who is earning 94 dollars monthly will be liable for a tax of thirteen dollars. The measure is now so vastly different from that recommended by Mr Roosevelt that it is generally preI dieted, that it will never become- law.