The Independent-News, Volume 94, Number 27, Walkerton, St. Joseph County, 12 December 1968 — Page 4

4

— THE INDEPENDENT-NEWS — DECEMBER 12. 1968

F The following article » ime to Uf* from the N itional Federation of Independent Buainet-s, ’n< . Mid certainly is an article that can provoke some thought The information involved came from testimony to Congress by a famous professor con- < eming the Social Security system that is one tax that is growing and growing over the vohtk not so it is greatly ngticable at any one tuns, but ever-the-less one that is sapping much more money at a 'ah rate. With another in-mi-e scheduled for 1969. and mwie in the future a> set forth y Congress, tins once meager animal is r. w in m< nsterous •orportions. It has o ten been said that •Id mtn i itate war- for young ven t fig t But rcgaidless ol ’he \a\ i.y- of ‘ i ng standng claim n w appears that >ld m<n it \ ting larger and egger S .11 St'Ui.t. benefits •or the nttmp'iK- and putng t..c fin mmg burden on he young. Under S x . il Security, a man ©tiring this year will “break •ven within 3’ s years. At io-t. he •nd his employer have ontributed $5,235 on his behalf n 31 years. On the other hand, a 25-year-jld startfTlg work this year and paying the maximum tax for ne next 10 years, may not get a “fair return" even if he outves .Methuselah despite paying -ix times as much. This young man and his boss will contribute $31.293 60, dur.ng the four decades (not canting the Medicare portion i under maximum rates passed “cently bx Congress. Accumudting interest at the low rate 1 4 percent per y< »r. this would gr >w to $73,275 by the me the employee is 65. To deplete such a fund in maximum future Social Security benefit*. a man and his wife would have to live past his •sth birthday. Benefits would >• Utt e m< re than the interest, it first. However. if he is single or a widower at age 65. he cannot ■saibly recover his equity in payments His maximum benefit of $2lB would be less than the interest that would accrue ,» $73,275, so he could draw “is amount indefinitely without even touching the principal. Even Methuselah, reputed to nave lived 969 years, would nave been short-changed by bu plan. This startling prospect for •da' s young worker is re.rdtd in a study by the research staff of the National • ©deration of Independent Business. It shows that whirl social Security is a boon to many Ammetns n w drawing benefits bxlays young worker wiH pty a premium tax to supts.rt his e!de-s Even di- canting 20 percent of the S < unity taxes to cover .he di: r. it;. and survivors' in-ur >n < p rt; -n- of the plan. . -da s > -ung p< plc will have defy life expectancy table© to collect in n t rement benefits .u- re than a fraction of the iontributior. made in their LehaJ! IMs unbng this 20 percent, maximum enq oye© - employer ontn! .itlons for the next 40 years wif! be $25 036 which at 4 percent interest, would swell io $5" 020 Com parable f.gures for the first 31 year- of Social Sacurl y are $4,7*8 and $6,201 1“ both <ase- these are maximum figures without Medicare On the minimum aide, lul# po^jhle nat someone whose empb»jeeemph xer tax amounted t ■ i mor* than S3O (with interest! is now r» living benefits Th< S ial Securitx tax paid by the t mployee and matched b\ his employer began in 1937 as 1 per* ent of the f: -l J3(XMI of annual income, or a maximum tax of S3O on each. It remained that way for 13 years but has inert a*ed at a <elerat r.< puce in the last de< ale Ten ye tea ago. the maximum Was $94, three

Social What?

year- ago it was $174, and today it is S3(M 20. not counting half a jsenent ($391 for Medicare. Since the current rate (without Medicare I is 3 9 percent of the fi st $7,800 of income, and this will reach 5.1 percent within five years, today’s young wage-earner may well pay 3 percent of his lifetime earnings to Social Security. And hrs boss will pay tin equal amount. Under persent law, passed in December, if his income remains at or above $7,800 n year, today’s young employee will personally pay $15.646 80 in the next four decades . . . six time- the maximum paid by anyone now receiving benefits. Tobix- young employee may be asked to pay even more, for Congress Jras repeatedly increised the tax base o~ rate, or both. Thus, while the tax base is nxed at $7,800 indefinitely. C ngres- his heard proposals for a SIO,OOO or even $15,000 base Last year, the Striate apnrovt I a SIO,BOO base for 1972 and thereafter, but yielded t<> conservative House members in the final version of the new Act In 1954. the maximum tax scheduled for I9&> was sot al 3 percent of $3 600, or SIOB But subsequent Congressional action almost tripled this. It may be a-gued that today's young people will receive much higher benefits than now provided by law by the tune they are eligible Cor pensions, since benefits have also been increased frequently by Congress. But higher benefits and higher taxes have g<>ne hand-in-hand. and it is doubtful that the ratio now facing Voting people will change much. The grim fact is that, after 31 years of pay roil deductions. S«ctal Security fund reserves remain at an amount less than one year's benefit payments. Current benefits are heavily dependent upon current tax revenue. Furthermore, many experts in the field believe that the Sxlal Security tax rate is approaching a practical limit. The combined employee-em-ployer tax including Medicare will r< .< h 11.8 percent within 13 years. Financing much higher benefits 40 years hence may thus prove impractical An alternative proposal, suggested by Professor Colm D. Campbell of Dartmouth College. is to finance higher benefits from general revenue of the Federal government. This was prop sed by Senator Winston Prouty, Vermont, but defeated, in the Senate last year. Suppose our young man 1< es live to the age of 65. (It is possible, by the way. for hun to die leaving rr» qualified dependents and no one will receive any benefit, except the burial allowance of S2OO. i Average life expectancy at age 65 i- now 14 years. Withdrawing annual amounts equal to maximum old-age benefits from a $.58,620 fund drawing 4 percent interest would still leava some S2SOuO in principal after 14 years The Social Security Administration disputes his reasoning, asserting that a person can receive back his tax contributions if he live a full life expegjancj atfer reaching 65. However, the agency uses only the employee tax or its computation, and Ignores any reasonable allowance for interest. The employer s is an im-po-t nt tuns! jurat, n. however, not only as a co-t of doing bustno- but aL<> In-cause it is money which otherwise might be spent on a private pension plan for the employee Social Security if often compared with private insurance or an annuity. TodaUs 25 year-old couM purchaM- sso(mx> cash-value “whole life insurance with the which will go to the old age benefit portion of Sm-i.tl Security Or. after banking the money fur 40 years, he

could purchase an annuity which would pay him $l4O a month beginning at age 65; this com pa-os with a future maximum Social Security benefit of $323 if married, or $2lB a month if sihgle or widowed. The conclusion to be drawn is that Social Security is more welfare than insurance, and young people should not view Social Security taxes as dollars put away for their own benefit in later years. The taxpayer who works most of his lifetime will pay a substantial amount to provide benefits for others who qualify for full beneits by paying smaller taxes — either because they are older, or because they will not work no many years. Disgrace It WMS almost shocking tn see the front page of section two in Sunday’s South Bend Tribune. Despite the fact that two three column pictures were featured with a big five column shot of the Greenhouse, there was still room for some stv>rles and some stories they were. To just give headings and highlights of five, they read; 1. ‘Thug Drays Woman in Purse Grab." This concerned the injury and losses of u 56 year old woman Saturday afternoon between a bus stop and her home. 2. "Purse Taken in Store Lot." A 73 year old woman was the victim of this act in a Kroger parking lot ut 201 E. LaSalle, just a block from the middle of South Bend She also was forced to the ground. 3 "Couple. 82, Terrorized By Robbers.'' A man and his wife, both 82 were terrorized and robbed of about S4OO in their home. Both were treated by ductors. 4. "Two Beat, Rob 76 Year Old." A 76 year old man was robbed and knocked to the ground in the afternm>n. 5. “Beat and Rob 80 Year Old ' An 80 year old man was knocked down anl robbed m his yard al 3 p.m. in the afternoon. Despite the fact that It i expected to have incidents for some odd reason in a city, such as this is almost unbelievable Five seperate incidents, no arrests, and this was all just Saturday, mostly in the afternoon Such incidents as this have grown and grown in recent in on Uis and years as less and less respect for the law and law officers have been given due to rulings in favor of criminals, robbers, attackers, etc. It is true that the police can’t be everj-whtre, but such as this is just a definite reason people consider the streets and unsafe place. This terrific crime rate was a political issue in the recent election, but it seems that this is a matter for each and every town an J city t fight on their own. Everytime something like this happens, the Federal Govemn nt can't be called in to Investigate the case. The backing the Federal government must give however, is to force stricter enforcement, conviction and punishment for those who do wrong. If it could only be known, it is very probable that some of the guilty ones in these c.-uses could be living off other people's money. Welfare case.and poverty condition- seem t< go hand in hand with crime, despite the fact that in most cases i r the desire to take care of ones problems Mid g< t a job, these same |»e< pie would not have to be on welfare It is about time that some of the many dollars the taxpayers are paving for abut everything, that some guarantee of proterUon and safety will be given It certainly isn’t enrouruging tu rea l so many stories of Uns line day after day H a so easy tn make plans that »ome people*’ ideas never gel pant the planning stage.

Memories From . .

1963 Shoe Store To Open Soon in Walkerton. A family shoe store, to be known as Don's operated by Don Bottorff of Dofiaklsnn, will open soon in Walkerton. The store will be located at 611 Roosevelt Rd. Telephone Company. Announces Change In Billing. F. E. Burkett, manager of the district nf United Telephone Company of Indiana announced today that a new simpli^ied form for billing customers for telephone .service will be mtroduced this month. Kettle Drive Nets $84.73. The first day of the Salvation Army Kettle Drive netted $84.73 in Walkerton. This total is under the average take of the drive but each year it seems to grow as Christmas gets closer. Completely Neglected. It appears a'ler the first snowfall of any significance this past week end that not only is Slate Road 23 neglected in the plans of the State Highway Commission but also that II had been forgotten about more locally as this old road was completely passed up in any sanding or salting operations to cut the glare of ice it developed. All Monday and early Tuesday, 23 was a real hazard lu driving ap the snow-packed rood was extremely dangerous. Bad Now But Bwuiml To Improve. 'fhe startling news that Studebakers were closing out their car Hue in South Bend broke M<ndpy and certainly started the stories flying. This news, which will effect several thousan I workers, to say the least, was depressing to an area that for many years depended much (n this company to Influence the economy of the area. 1958 | Rest rid Parking On Main Street. Effective at once, parking will be prohibited in the too block o* North Main Street after 12 pm. until 6 rm whenever there is a severe snow storm in N >rth Liberty. Elevator Sponsor* Group To Llvrstoch Show. Through the courtesy us Bob Knecht and the Master Mix Feed Company, a group of livestock feed«rs speot Fridav at tlw International Livestock Show in Chicago. Br-r-r! Weather you like it <>r whether you don’t we’ve got it. and It looks as though we re going to have it from now on out. It’s no bit <4 news that North Liberty has been under a bleak, cold spell this past week, but in case you haven't been out. its been terrific! One unofficial report had a thermometer reading o' early this week at 15 below zeru. 1948 Ray Olson Will Manufacture Miwhlnr. Ray Olson, of Koontz Like, who has operated a garage in Walkerton several years, has perfected a new piece of mnehinery which he expects to manufacture here. It is the Olson Un Remover and Installer for which he has a patent pending In explaining the new tool, he stated that this is a one man operated tool and will do the work formerly done in garages by large hydraulic presses, which require two men to ope-ate. Harry C. Doll Nnmnl To Fill Tenn. Harold C. Chaney tendered his resignation as a member of the Beard of Town Tru^ees for the Town of Walkerton at its meeting Monday night Thin will become effective December 31 1948. He will be succeeded by Harry Doll, o r the fifth ward, who was appointed by the Bu ird of Trustees. An Appeal to Your I’rkle •4 Ownership. The official family of the town of Walkertvn feels a just amount of pride in the new rest

rooms recent!}’ completed. This includes the members of the Town Board and the members eg the various departments including the Police Department which will have supervision over the rest rooms. ; Main Street Gossip Snow, snow everywhere. Sun day morning when I a woke, i was surprised to see ail th. t snow on the ground. This is thbest medicine for the peopb that haven't even started then Christmas stropping to see th» ground covered with snow. Saturday afternoon, the town was a buzzing with people th • were shopping for Christm t The ornament sales were temf: —MS G — Tis the season to be sneezir but beware of those cold drug if you are planning to drive. I* is not necessary to take morphir. or cocaine to be thorough, doped al the wheel Also, man people take pills to countera • the systems of fatigue and Uie • amphetamines or "pep pills" ir crease alertness and efficient temporarily, but when their < - sects wear off, headache, irritability. inability to concer. trale, hallucinations, nr ev< greater fatigue may resui' creating o first-clans highw menace. So. watch out forth other guy. —MS G — Some of the merchants town are now staying open the evenings for the Christm < shoppers. t —MS G — Feece's Floral Shoppe is n< open. They arc located i'. Ilhtiois Street is Walkerton. —MS G — With the snow on the groun : remember to feed the fine feath er friends, our birds. —MS G — Sales of guns and ammunit! will be controlled under the n> v. Federal gun law which takeffect December 16. James E. Daly. District Dirt* tor of Internal Revenue for In diana, said IRS l» prepant materia! to help gun dealer gun buyers and collectors con ply with the new Gun Contr Act of 1968 which enacted : Congress m October. Mr. Daly said the new 1 should not place any unrea : able restrictions on the purch or ownership of ordinary gui used for hunting, target shoutn or other lawful purposes. P« raons under 21 will be p’ hibited from purchasing piste revolvers, and ammunition t such weapons and persons un i' 18 will not be permitted to pu' chase any tire onus or ammunition. Smiles will generally not I permitted to out-of-state r» dents, Mr. Daly said, although pers*»n from an adjoining st a' can buy a rifle or shotgun I complying with certain pr visions ut the new Act. Sal*' remdenU of a slate will be pr hibited if possewuun of the arm Is not allowed by I•' ordinance. Sumnuirtes of pertinent I * laws are being compiled In booklet to be mailed by IRS • Federally licensed gun dealer The booklet. Publication “Published Ordinance* • H 1 arnw," should b* In the hand dealers before December 16 enable them tv check on the laws us a locality before 3el a gun.