Show Society Security r To 0 Cost More Than rhan Income Tax Sen Wallace F. F Bennett Dennett R- R Utah said recently that a crisis has been reached in the Social Security program caused by the House passed bill and efforts by the Johnson Administration Administration Admin Admin- to add health care for forthe forthe forthe the aged to Social Security HE SAID the reasons for the crisis crisis are are twofold First the ten per cent of payroll social security tax ceiling ceiling ceiling ceil ceil- ing would be broken through and second the social security tax on an average self em person would for the first time exceed his income taxes U THE UTAHN who made the remarks in a Senate finance committee hearing which is discussing the a n 1 measure called the plan a costly costly costly cost cost- ly mandatory idea that would be a burden on low income workers We have come come with this bill and at this time to a point of great decision decision- he said Are we going from here on em out to have a so social l security system which costs an individual individual individual ual at the maximum covered by the the system more more than it costs him to support his share of the cost Cst of our government THE TIlE SENATOR a ranking Republican n member of the finance finance fi finance fi- fi nance committee placed into the hearing record a detailed breakdown comparing income tax and social security taxes for for a typical self-employed self person person person per per- son earning annually He He noted the pending House House- passed bill which liberalizes social social social so so- cial security benefits but not including the addition of health benefits would raise the payroll payroll payroll pay pay- roll taxes of such self employed persons to a year by 1971 SEN BENNETT NEIT said This would be higher than the federal federal fed fed- eral income tax bill of that the same self-employed self person with a wife and two children would pay that year If hospitalization hospitalization hospi- hospi is added the gap becomes becomes becomes be be- comes even wider and the same mans man's social security tax would exceed his income tax as early as 1966 The uThe social security tax for far forthe the average person is becoming becoming becom becom- ing the tail wagging the fiscal dog he said THE UTAHN also joined with Sen Everett M. M Dirksen R- R Ill III in pointing out that since hospital costs have risen steadily steadily steadily stead stead- ily on an average of 7 per cent centa a year then the payroll taxes would have to be increased in a never-ending never circle in future years if health care were added added added ad ad- ded to Social Security in order to keep pace with the rising hospital costs He also said that when we look back to 1952 we discover we have increased the dollar benefits of social security at atthe atthe atthe the maximum end by per percent percent cent and at the minimum end by per cent In addition we have increased the base by 50 per SO IF YOU look forward a alike alike alike like number of years based on our experience in the past we discover we are looking looking look look- ing forward to substantial increases increases increases in in- creases in base and we are bumping our head on the ten per cent of payroll ceiling adopted by the then Secretary of Health Education and Welfare Wel We- fare Abraham |