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The social security system is assured sufficient income into the 21st century, Bruce A. Hundley, social security manager in Culpeper, said recently.
The additional income provided by 1977 legislation virtually eliminates the financial problems faced by social security during the past few years, Hundley said.
At the same time, the additional cost to most workers Will be moderate. For example, under the old law, a worker with 1978 average earnings of $10,800 would have paid taxes of SI,201 in 1987 on average earnings estimated to rise to S18.600 by that year. Instead, under the new law, his 1987 tax will be about $1,311, an increase of only $130 for the year over what he would have paid under the old law. This is about $2.50 more a week.
The first year the social security tax rate will be higher under the new law is 1979. The 1979 tax rate for employers and employees each will rise to 6.13 per cent from 6.05 per cent. The rate will increase in steps until it reaches 7.65 per cent in 1990 and after. Under the old law, it was scheduled to increase to 7.45 per cent in 2011 and after.
Under the new law, as under the old, the maximum yearly earnings subject to the social security tax will rise.
78.3%