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Rappahannock News
Published Thursday Morning at
Washington, Rappahannock
County, Virginia
Dial Washington 2851
LUCY CATHERINE BOWIE
Publisher
Entered as second-class mail matter at the post office at Washington, Virginia.
Subscription:_$2.00 a year
Old Age Assistance
And Old Age Insurance
By Mri. Elizabeth Buntin
Today I should like to say something about the old age insurance program set up by the Social Security Act of 1935. I am indebted for much of this material to Mr. William L. Painter, who wrote an excellent article on the subject in “Virginia Public Welfare” for June, 1949.
Basically there is no difference between Old Age Assistance, which is administered by the local welfare departments, and Old Age and Survivor’s Insurance, which is handled through the Social Security Administration offices. Both programs have the same bask purpose—that of providing financial eecurity for aged people. But while Old Age Insurance payments are based on financial need. While there is little or no criticism of the OASI program, there is much criticism about OAA. This criticism seems to boil dohvn to the feeling that OASI is earned, while OAA is not.
Now it is true that tne amount of the payments in OASI is based on credits computed by a formula based on length of employment and amount of wages in the types of industries covered by OASI. And the money used for the pensions is built up by contributions by both the employers and the employees. A certain amount of the worker’s pay is withheld. But these contributions do not cause the worker any sacrifice, because his wages are large enough to take care of his family's needs even after the social security tax has been withheld. Actually it is the public who contributes most to this OASI plan, because the employer^ and employee’s contributions are reflected in the purchase price of goods and services; in other words, they Charge enough so that the money they have to pay out doesn’t hurt them; the public really pays the bill.
In spite of the fact that the consumer, who is also the taxpayer, pays the bill for the OASI benefits,
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