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Facts Forum News, Vol. 5, No. 1, January 1956
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Facts Forum. Facts Forum News, Vol. 5, No. 1, January 1956 - File 023. 1956-01. University of Houston Libraries. University of Houston Digital Library. Web. January 23, 2020. https://digital.lib.uh.edu/collection/1352973/item/209/show/162.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Facts Forum. (1956-01). Facts Forum News, Vol. 5, No. 1, January 1956 - File 023. Facts Forum News, 1955-1956. University of Houston Libraries. Retrieved from https://digital.lib.uh.edu/collection/1352973/item/209/show/162

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Facts Forum, Facts Forum News, Vol. 5, No. 1, January 1956 - File 023, 1956-01, Facts Forum News, 1955-1956, University of Houston Libraries, accessed January 23, 2020, https://digital.lib.uh.edu/collection/1352973/item/209/show/162.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

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Title Facts Forum News, Vol. 5, No. 1, January 1956
Alternate Title Facts Forum News, Vol. V, No. 1, January 1956
Series Title Facts Forum News
Creator
  • Facts Forum
Publisher Facts Forum
Date January 1956
Language eng
Subject
  • Anti-communist movements
  • Conservatism
  • Politics and government
  • Hunt, H. L.
Place
  • Dallas, Texas
Genre
  • journals (periodicals)
Type
  • Text
Identifier AP2.F146 v. 5 1956; OCLC: 1352973
Collection
  • University of Houston Libraries
  • Facts Forum News
Rights No Copyright - United States: This item is in the public domain in the United States and may be used freely in the United States. The item may not be in the public domain under the copyright laws of other countries.
Item Description
Title File 023
Transcript m/^tBKKt^^Km^KKtmmKKi (Continued) SOCIAL SECURITY ii'1' interest earnings on the accunui- epresents the «3||.(| trllst fun(| wi|| over |h|, ,(m„ ^^ own rctiroiiic**U|)|)(irl ||„. disbursements for benefits e survivorship r„| administrative idents. expenses. FALSE CHARGES INCIPLES If bus ulsei been argued that the trust Social SecuritJu,,,) js ., |,|,olly. ,|K1| ,il(. ?0yernmenl ■erlain basic pa spending the monev for current ex- eey arc sound, enditurcs which il is receiving Irom iples? ie- Social Security taxes. ''"'' aS"i«*J ^ common charge against the presenl leans test." Western is that tin- teixpeiycr will have- lo - have paid tn'ay twice for Social Security: once entitled to be**-],,.,, |„. |K|ys |,js s<>,-i;il Sea-urilv con- icial situationHbution. and again when he pays his Jenerul tax,-- lo redeem the government ram is I'mann-fond now held bv the insurance fiuul. nun both emrt This eharg,- has been repeatedly percentage oHil(|,,. |, is f.,|sl. Th|. ,.,..„„„ f(1|. ,|„. I management, li-lu„l,-,--|e,i„|i„L. is thai while- lb,- tax- iblie will lake layer |las ,,, |)a, ,„;,.,. |]r doesn't pay , lb,- program-knee f,,,- hi-s Social Security, lb- pays ie- related to *lviee because be peevs for Iwo separate n accord wifiings. free enterpriS'j |, |las | n a||(,„0(j ,,n.1, that tl„- gov- eer who earns Viinienl S|„,n(]s ,|l(. monev ;M the'See- lal Security trust fnml for j|s current 11- paid only I" vp.-nscs. |,u| ||„, r,.;lson that lb,, gov- •ctiieel. Tbe sv- rnniciil spends the proceeds from any efils arc pan1 f it- bond sales including those ystem lo pay "hich it has sold In the trust fund — is ecause the Congress has authorized 1111 should befcrtaiii sums to be spent. .1 financial 1'* This money would be spent anyway program whi'^Ticlhe-i or not such ei trust fund was in own quantilieS'xislence. \nil if lb,- Treasury did not people there •■II it- l.ontls lei the trust fund it would :>w. what will ave- to raise the money in -emu- other ill be lhe vali'1"av either l.v selling bonds to indi- , forth. Jjduals, banks, insurance companies, iscuss this fifti'-iel -,, fonh. ()r Congress would have to re have been *ise additional taxes to find the 111.uu-v ucial set-up. h"'h il had instructed the executive I lie- pr,,.5l5""'|5illmciil to spend. ml insurance r Honds sold lo the trust fund an- as • system we-i'' Hell ei part of the national debl eis here is not ■**'' any other obligations of the- govern- lhe trust fund 'lent. It is true. ,,f course, lhal when ,i-e- who haV'ics.- I,,,!,,I- mature eell taxpayers will jive to contribute to paving them off. nceplion of •'lfl!ut l'"' fact that these sums wen- In- plies le, ,,iir ("','sted in tin- li-nsl fun,I elocs not add ranee system " ,e nickel lei the- amount which the- tax- eibly from timers will have- bail to pay anyway in oundncss as it -deeming these bonds when due-. So I insurance. .""net see how il .5111 l„- claimed that tant difference Aosc contributing l.e So.-ieel Securit) are social insurant any extent paying for their insurance ■d to be perp'*'|",<' »«t. itinuous How 0' " s,'ems I,, me that lb,- 1,-1 a- to lit of its co!iif*''l,"'r this i- or i- not em honest trust nul is tin- question whether when this mav be- -eii<l lMone>' 'f needed by the- So.-ieel Security .ivors lnsurai*<"*-Ml'm- il can call upon the trust fund ly sound, if '''r ''"' """lev without in any way in- ,\ reason of l'1'1''""111" 'he governmenl debt, ll can. e- from contrtj Certainly il you or I put some money usiele- eis ei reserve- for some contingency eunl when this contingency arises we are able to spend this money withoul increasing our debts, we would have bud a real reserve. This is the case with the trust fund. PAY-AS-YOU-GO Another suggestion repeated often bv many businessmen is lhat the system should be put on pay-as-you-go basis. \,ew pay-as-you-go is an attractive slogan. It is certainly justified in budgets both governmental and private but w hi-ii you apply this philosophy to our Social Security system il means that ihi- generation should only pay the benefits due to the comparatively lew who eire- now entitled to Social Security benefits and tbat we should let future generations worry about how to pay for all tin- promises which we ein- making eis lo bow much vve will pay lo the workers who ret in- in the future and their survivors. Sucb a program would 1111:111 even lower Soeieil Security taxes than are now in effect for the present generation, bul much heavier very much heavier taxes on future generations. This matter was lotight out a year ago when the automatic increase from 1 1 2 lo 2 per cent under the law l.ieek place. It is un interesting fuel that representatives of "in labor organizations, the AF of I. ami the CIO, those whose members were mosl affected, wen- in favor of the increased tux: ami that those- againsl it wen- representatives of industry. The Chamber of Commerce of tbe United States ul first favored freezing tin- tax al I I ._, per cent, but then ineeili- I'u-el their program by recommending that there would always be a reserve fund amounting to 2(1 per cent of payroll. Intler the present payroll of workers in the United States this would require a trust fund of thirty-four billion dollars, considerably larger than the presenl fund. Thus one of the chief advo- e eite-s of so-called pav-;is-\ oil-get seems lo be weakening. ACTUARIAL SOUNDNESS NECESSARY It musl la- noted that thc building up of tin- trust fund by taxes on tin- present generation will lower the teix burden on future generations, for il is estimated that when the system matures approximately 20 per cent of the' be-ni'- fits will be- paid out ol amounts received eis interest on the trust fund's holdings. We- ein- today making promises as to bow much te, pay those- who retire in Views, Jiintitt'1!'* kr-rs Fom-xi News, January, 1956 the distant future. To make no provision to raise the money lo pav our promises, to sen lo our children anil grandchildren. "We meiile- tlie promises, il is up to you lo fulfill them," seems to me to be cowardly. It is of utmost importance lhat the system be maintained as actuarially sound ee- i- possible Every year wc have innumerable requests for changes in the system anel feir more benefits. Many ol these requests seem reasonable. They certainly bene political appeal. If we could not reply lo those advocating these changes that lo make them woulel impair lhe soundness of the system, many increased benefits would be difficult to resist, and the enactment ol these proposals would place an intolerable burden on future' generations- even endanger tin- solvency of our federal treasury. Another suggestion made by some businessmen a couple of years ago was that all over tin- ine of 65. whether thev heul contributed to the Soeieil Security system or not. be paid a minimum sum. Il was planned that this sum be paid from the trust fund, tbut funel which is made up of current und pasl contributions made bv employees and employers for tbe employees' protection, and not from tbe general revenue. This, of course, would have- the appeal that the payment would not have lo be included in llu- budget. I found it especially difficult to justilv diverting this money which weis paid in for lhe protection of these workers and their dependents to other purposes. \\ e would be breaking faith with the employees and self-employed persons of this country who hud paid Social Security taxes if wc were- le, u-,■ part of their contributions to pay benefits to persons who hud not contributed a single cent to the system. TEN MILLION MORE WORKERS INCLUDED Now let us look al the presenl situation. Last year, as you know, on the recommendation of Presidenl Eisenhower, the most sweeping eiml broadening improvements in thc OASI system since its inception were enacted inlo law. Ten million more workers were included in llu- system. Increased benefits were provided for all presenl anil future retired workers ami their dependents. The- situation of those who through illness or unemploymenl or oilier mis- Fortune heul years when they had low earnings or none was alleviated by ;il- lowing a worker to drop as many as five years of low or no earnings when his wage record weis calculated for bene- Page 21 I ng J
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