More Social Security

SPOKESMEN

Eric A. Johnston, president of the U.S. Chamber of Commerce, Traveling Salesman No. 1 of U.S. business, paused in Chicago last week to tell industry to get busy on the social security law.

Spokesman Johnston prodded business to give practical guidance to developing the social security program, and made a special plea for a 50-50 employer-employe sharing of the burden. He cited the fact that the employer currently pays a 4% tax on his payroll towards social security costs, in contrast to a 1% employe contribution. Including workmen's compensation, the employer now pays 84% of the social security bill, the employe 16%.

Johnston wants business credited with its current contribution. Said he: "Business is now paying most of the cost of social security. But the credit is going to the welfare worker, the social uplifter and the politician."

Johnston told his audience of Chicago Executives' Club members that social security is costly but worth it, and is obviously here to stay. He said: "The decision is not whether we shall meet social security costs, but how. . . ."

The "how" was a puzzler, Johnston admitted. He argued that of the two possible ways of meeting the costs (out of general revenues or from payroll taxes), the payroll taxes are the lesser evil. But he recommended that increase in the rate of such taxes should be imposed slowly and spread over a period of time.

Johnston does not want social security extensions (hospitalization, sickness benefits, etc.) carried out federally, as provided by the Wagner-Murray-Dingall bill. Instead, he wants additions and improvements made by state and local governments, to minimize "the evil effect of bureaucracy and remote Washington control."

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