THE COLLECTION OF FEDERAL OLD-AGE BENEFITS TAXES AND THE RECORDING OF WAGES BY MEANS OF THE STAMP PASS BOOK SYSTEM.

Prepared for the Treasury Department and the Social Security Board by Frederick Bowes Jr., 1930, and others. Pitney-Bowes Postage Meter Co. 1936. Mimeographed.

The subject of Federal payroll taxes generated as much heat as any topic in the closing weeks of the recent presidential campaign. The antagonism of many employers is based as much upon anticipated red tape, annoyance and expense in the administration of the act as upon the burden of the taxes themselves. The present report, supplementing the one by Mr. Bowes which was reviewed in the May ALUMNI MAGAZINE, presents in very convincing manner a method by which the old-age taxes may be administered simply and economically, without undue annoyance to employers, large or small, and without the necessity of frequent and involved reports on payrolls. It appears to be equally attractive, safe and convenient to employees; and economical and effective from the standpoint of federal administrative departments.

Payroll taxes are really the backbone of the Social Security Act as it now stands. When fully operative they are expected to yield nearly as large sums annually as all our federal taxes a decade ago. If the stamp pass book system is adopted and if it proves as advantageous to all parties concerned as appears from this analysis, it will have contributed materially to the successful operation of this epoc-making act.