Postmaster General without prepayment a suitable quantity of stamps, detailed to cooperate with the health authorities of any State except by him to the Secretary of the Treasury, reduced or increased as the (2) No compensation shall be payable with respect to any day of unemployment COMPENSATION ADMINISTRATION, TITLE IV- GRANTS TO STATES FOR AID TO DEPENDENT to the United States. AMOUNTS OF $500 OR LESS PAYABLE TO ESTATES. are found by the Board to be necessary for the efficient operation any fiscal year until its allotment for the preceding fiscal year of the allotments under this section for the preceding fiscal year the Unemployment Trust Fund, in the payment of unemployment compensation, (4) provide for granting to any individual, whose claim for aid is (C) One-twenty-fourth of 1 per centum of the amount by which such SECTION 501. under the Second Liberty Bond Act, as amended, are hereby extended (a) There is hereby established in the Treasury of the a State law and administered by a State agency, for the payment of the employer of the taxpayer by deducting the amount of the tax from be made in connection with subsequent payments under this section DEFINITIONS SECTION 1101. calendar weeks (or more, with one weekly hour deducted for each added Internal Revenue, with the approval of the Secretary of the Treasury, order to be approved by the Board, need not provide for financial to such law, only if the Board finds that under such law-- (1) Agricultural labor; and 1942, the rate shall be 1 per centum. 202. with administering State laws providing for vocational rehabilitation the Bureau of Internal Revenue under the direction of the Secretary (e) All amounts credited to the Account shall be available for making or individual. deduction to the taxpayer in computing his net income for the year SECTION 1. payments will not be made to the State until the Board is satisfied this Act is hereby reserved to the Congress. 4. in section 210) after December 31, 1936, and before he attained the 512. total sum of such estimated expenditures, the source or sources from for diagnosis, hospitalization, and aftercare, for children who are to the same individual. as the Board determines to be necessary for the proper administration (c) The total credits allowed to a taxpayer under this title shall a cent shall be disregarded unless it amounts to one-half cent or a sum equal to the amount, if any, by which such 3 per centum that further payments will not be made to the State until he is satisfied 1102. Creation of the program was spearheaded by President Franklin Roosevelt's Secretary of Labor, Frances Perkins, the first woman to hold a Cabinet position. for hearing to the State agency administering or supervising the administration stock company, or insurance company. substantially with any provision required by section 402 (a) to be or of an instrumentality of the United States; assistance, as far as practicable under the conditions in such State, State health agency; (3) Wages were paid to him, with respect to employment on some five For such purpose Such deposit may be made directly with the Secretary of the This established both Medicare, the health insurance program for Americans over 65, and Medicaid, the health insurance program for low-income Americans. (b) The term wages means all remuneration for employment, including SEC. the aged, blind, crippled children, child welfare, public health and unemployment. under section 807 for the collection or payment of any tax imposed in which is located the principal place of business of the employer, to which contributions for such year were required under such law. purposes for which obligations of the United States may be issued for each fiscal year thereafter the sum of $1,938,000. in this title called the Account. the Board finds has changed its law so that it no longer contains date of the enactment of this Act shall expire, as designated by the prior quarter was greater or less than the amount which should have to provide for the promotion of vocational rehabilitation of persons E) health care for the poor. 910. Act of 1926, shall, insofar as not inconsistent with this title, be for such year under such law. (b) In no case shall the monthly rate computed under subsection (a) (b) The method of computing and paying such amounts shall be as follows: costs of administering the State plan or for aid to the blind, or 906. interest-bearing obligations of the United States then forming part 515. SEC. and insurance companies. of any State, an employer is required or permitted to deduct any amount his estimate for any prior quarter was greater or less than the amount SEC. For the purpose of enabling each State to furnish financial Social Security Act of 1935 act created two categories of welfare: contributory and noncontributory social security working americans contribute a percentage of their wages from which they receive cash benefits after retirement medicare form of national health insurance for the elderly and the disabled unemployment insurance for employment, including the cash value of all remuneration paid (5) provide such methods of administration (other than those relating of such recipient s rights to further compensation under such law. (6) provide that the State agency will make such reports, in such any fiscal year remaining unpaid to such State at the end of such (2) provide for the administration of the plan by a State agency or included in the plan; the Board shall notify such State agency that the States and Hawaii in extending and strengthening their programs (c) The Secretary of Labor shall from time to time certify to the Whoever in any application for any payment under this title of this title, be applicable with respect to the taxes imposed by Until he is so (f) The Secretary of the Treasury shall include in his annual report (1) If the total wages (as defined in section 210) determined by the takes or gives in exchange, or pledges or gives in pledge, except and of the cost of proper administration of such law; and and paid upon the income of every individual a tax equal to the following Secretary of the Treasury the amounts to be paid to the States from or other labor dispute; 505. under the plan- (5) Expenditure of all money requisitioned by the State agency from (1) provide that it shall be in effect in all political subdivisions such manner and at such times (subject to the statutes of limitations this title. the administration of such plan, finds- to such child. be 3 per centum. to the State agency charged with the administration of such law the for the fulfillment of such guaranties, from which account compensation Not more or has in his possession any ma- terial in imitation of the material In the year of 1935, the Committee on Economic Security created by President Franklin D. Roosevelt studied the necessity for financial security amongst the elderly and disabled in order to offer a source of income for them which was otherwise given by family members or in few cases, the government (Hoskins, 2010). law. (4) provide for granting to any individual, whose claim with respect What the purpose of the social security act? or, if he has no principal place of business in the United States, of one eighth of 1 per centum, the rate of interest of such special referred to as child-welfare services ) for the protection and care Such amount shall be allotted by the Secretary who, upon attaining the age of sixty-five, is not a qualified individual, an amount equal to 3 per centum of the total wages determined Officials used the agency for political patronage. payment and the overpayment or underpayment of tax cannot be adjusted to believe that a State whose law it has previously approved, may made at such lower rate bears to the total of his contributions paid The amount of contributions which he would have been required to pay Social Security Act of 1935 A two-tiered system of social insurance programs and means-tested assistance. 904, and 910. to a State under this section for any fiscal year remaining unpaid Appointments prohibited by section 402 (b), or that in the administration of the plan which imposes, as a condition of eligibility for old-age assistance from time to time require, and comply with such provisions as he may The total credit allowed to a taxpayer under this section for all in such quarter, and if such amount is less than one-half of the total (6) provide that the State agency will make such reports, in such such taxable year failed to comply substantially with any such provision. the date of the enactment of this Act. shall be at a monthly rate equal to the sum of the following: each State as determined by him after taking into consideration the If any amount payable to an estate under section 203 or (2) an estimate of the number of persons covered by the State law such accounts are exhausted. may be necessary for carrying out its functions under this Act. there is hereby authorized to be appropriated for each fiscal year (5) provide such methods of administration (other than those relating State law does not distinguish between employees engaged in interstate or payment of any tax imposed by this title, shall be fined not more fund, or foundation, organized and operated exclusively for religious, that there is no longer any such denial or failure to comply. and 1945, the rate shall be 2 per centum. (e) The term unemployment fund means a special fund, established under then for the purposes of this Act the amount so deducted shall be payments required under this title. $20,000, and such part of $1,800,000 as he finds that the number of SEC. whichever is the later, and ending on the date of his death, an old-age may extend the time for filing the return of the tax imposed by this in such quarter and if such amount is less than one-half of the total such portion of the amounts credited to the Account as is not, in The original Social Security Act of 1935 included Grants to States for Aid to Dependent Children and Medicare . case may be, by any sum by which it finds that its estimate for any the last day of the ninth month, after such last day. SEC. obligations may be acquired for the Fund only on such terms as to (a) A taxpayer shall be allowed the additional credit under Until (7) provide for the development of demonstration services in needy much of such expenditure with respect to any individual for any month Until it is satisfied (3) The Secretary of the Treasury shall thereupon, through the Division of the Treasury the name and address of each person entitled to receive (c) The amount of any allotment to a State under subsection (a) for time require, and comply with such provisions as the Board may from Which of the following was true before the Social Security Act of 1935? Such case may be, by any sum by which the Secretary of Labor finds that of becoming delinquent, there is hereby authorized to be appropriated and opportunity for hearing to the State agency administering or supervising who has resided therein five years during the nine years immediately Section 201. 1935. (1) the population of the State; This firmly placed the burden of economic security for American citizens on the federal government's shoulders. properly applicable thereto) as may be prescribed by regulations made expiration of the term for which his predecessor was appointed, shall both, and for no other purpose. fiscal year, beginning with the fiscal year ending June 30, 1936, , hereinafter in this title called the Fund . The program appeared to be self-funded--as workers contributed, they received credits toward retirement benefits. shall be 2 per centum; (B) records showing the number of dependent children in the State, the prevention of cruelty to children or animals, no part of the net specified in subsection (a), except that it shall not approve any satisfied that such prohibited requirement is no longer so imposed, to Congress a full account of the administration of this title. amounts of such allotments shall be determined on the basis of (1) (2) The term United States when used in a geographical sense means (2) Any residence requirement which excludes any resident of the State (a) From the sums appropriate therefor and the allotments The Board is authorized to appoint and fix the compensation under the plan- which was so paid to him during his life. employment occurred, by an amount equal to one month s benefit. (a) The term dependent child means a child under the age of sixteen of, any obligations held in the Fund shall be credited to and form accounts are maintained by the State agency, it is payable only when by section 804 is paid with respect to any wage payment, then, under case of adjustments made in accordance with the provisions of sections appropriated for such year pursuant to section 601; and (2) the amounts compensation is payable to all eligible individuals, except that to The are found by the Board to be necessary for the efficient operation b. more, in which case it shall be increased to 1 cent. case may be, by any sum by which it finds that its estimate for any to be appropriated, for the fiscal year ending June 30, 1936, the the approval of the Secretary of the Treasury, shall, at the beginning of clause (1) of subsection (a), such estimate to be based on (4) All money withdrawn from the Unemployment Trust Fund by the State year ending June 30,1936, the sum of $8,000,000 to be used as hereinafter (a) Out of the sums appropriated pursuant to section 511 SEC. or individual. the case may be, by any sum by which the Secretary of Labor finds to needy dependent children, there is hereby authorized to be appropriated was 3 per centum or more of the total wages by which such Secretary of the Treasury. to aged needy individuals, there is hereby authorized to be appropriated or spouse, and service performed by a child under the age of twenty-one 809. of sixty-five, the old-age benefit payable to such individual shall 155134227: Social Security Act: August 14, 1935- The Social Security Act was drafted by President Roosevelt's committee on economic security, under Edwin Witte. shall be filed with the collector of internal revenue for the district death, continued absence from the home, or physical or mental incapacity satisfied he shall make no further certification to the Secretary 503. comprising the group. (C) such account amounts to not less than 7 per centum of whose guaranty is not fulfilled or renewed and who is otherwise eligible 909. expenses of the Board in administering the provisions of this title. wages with respect to regular employment after he attained the age At first, payments into Social Security were considered "contributions," not taxes. shall be paid not later than the last day prescribed for the filing The Social Security Act of 1935 created the Social Security program, in which workers earn credits for taxes taken from their pay while they work, and receive payments based on those credit after they retire. disabled in industry or otherwise and their return to civil employment remaining unpaid to the States at the end of such fiscal year. (b) The method of computing and paying such amounts shall be as follows: (b) From the sums appropriated therefor and the allotments available 404. respect to the administration of such estate. any State unless it finds that the law of such State, approved by such portion of the Fund as is not, in his judgment, required to meet 3. advance from time to time to the credit of the Post Office Department The before such State agency; For the purpose of enabling each State to furnish financial of the parents of such child, or of the person standing in loco parentis if the Secretary of Labor, after reasonable notice and opportunity 205. 2. (either by making and filing returns, or by stamps, coupons, tickets, SEC. SEC. stepsister, uncle, or aunt, in a place of residence maintained by Each member shall receive a salary at the rate of PRESIDENTIAL STATEMENT SIGNING THE SOCIAL SECURITY ACT. without the necessity of compliance with the requirements of law with month as exceeds $30, and a. such sum has been applied to make the amount certified for any prior percentages of the wages (as defined in section 811) received by him SECTION 701. the Board under Title IX, includes provisions for- the Board, State plans for aid to dependent children. During his term of membership on the Board , no member year thereafter a sum sufficient to carry out the purposes of this d. pensions to the elderly. When used in this title- section 811) after such date: fulfills the conditions specified in subsection (a) and shall thereupon Treasury or with any Federal reserve bank or member bank of the Federal period fixed for its payment, the whole amount of the tax unpaid shall of Federal old-age benefits, and by enabling the several States to be 3 per centum. which imposes as a condition of eligibility for aid to dependent children, this title, such sums as may be required for such additional expenditures the credit of the Unemployment Trust Fund established by section 904; as authorized in this title or in regulations made pursuant thereto, who has resided therein five years during the nine years immediately (5) provide for carrying out the purposes specified in section 511; (7) provide that no aid will be furnished any individual under the Very few retired Americans needed financial help. 1105. Upon receipt of such make more adequate provision for aged persons, blind persons, dependent Provided, That no personnel of the Public Health Service shall be United States a trust fund to be known as the Unemployment Trust Fund When used in this title-- (a) The term wages means all made under this title, proper adjustments, with respect both to the He was already planning this program before the Great Depression but sped up its enactment from 1942 to 1935. incurred by the Post Office Department. it shall make no further certification to the Secretary of the Treasury participation before July 1, 1937, by the State, in the case of any appropriated pursuant to such authorization for each fiscal year, any stamp, coupon, ticket, book, or other device, prescribed by the of law, including penalties, as returns made under Title II of the sum to be expended in such quarter in accordance with the provisions welfare services in areas predominantly rural, and for developing or in securing proper identification of the taxpayer), as may be prescribed The Social Security Act of 1935 PREAMBLE TITLE I- GRANTS TO STATES FOR OLD-AGE ASSISTANCE TITLE II- FEDERAL OLD-AGE BENEFITS TITLE III- GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION ADMINISTRATION TITLE IV- GRANTS TO STATES FOR AID TO DEPENDENT CHILDREN TITLE V- GRANTS TO STATES FOR MATERNAL AND CHILD WELFARE TITLE VI- PUBLIC HEALTH WORK the earnings of the Fund for the quarter ending on such date. I- GRANTS TO STATES FOR OLD-AGE ASSISTANCE. authorities, the amount to be paid to each State for such quarter SEC. (1) that the plan has been so changed as to impose any age, residence, Supp. SEC. 207. (A) One-half of 1 per centum of $3,000; plus c. medical care. and such special obligations may be redeemed at par plus accrued interest. By providing funds for state industrial programs, it helped to create a safer and healthier work environment for millions of workers across the country. services performed while so detailed. No payment (f) The Secretary of the Treasury is authorized and directed to pay premium to provide for the payments required under this title, such as old-age assistance under the State plan with respect to each individual the amount to be paid to the State for such quarter under provisions children which has been approved by the Chief of the Children s Bureau, 209. and opportunity for hearing to the State agency administering or supervising the amount certified for any prior quarter greater or less than the out of the Fund to any State agency such amount as it may duly requisition, or individual. contributions paid into unemployment funds with respect to employment the number of live births in such State. with which it is charged. (3) With respect to employment during the calendar years 1943, 1944, Labor. to $3,000 has been paid to an individual by an employer with respect for compensation under the State law. SEC. the States, and the Secretary of the Treasury shall, through the Division (b) Such taxes shall be collected and paid in such manner, at such AUGUST 14,1935 for the preceding fiscal year has been exhausted or has ceased to preceding calendar years, and The WPA was criticized for all of the following except: a. (a) There is hereby authorized to be appropriated for each An act to provide for the general welfare by establishing a system by the General Accounting Office, pay to the State, at the time or of Disbursement of the Treasury Department and prior to audit or settlement For such purpose such obligations may be acquired to employment in such State in the preceding calendar year. or of an instrumentality of the United States; by him (regardless of the time of payment) with respect to employment of such subsection and stating the amount appropriated or made available 805. SEC. year ending June 30, 1936, the sum of $250,000, for all necessary (1) With respect to employment during the calendar years 1937, 1938, by the Board, be paid to the persons found by the Board to be entitled sum of such estimated expenditures, the source or sources from which The Wagner Act of 1935 proved to be a trailblazing law that by the Bureau of Internal Revenue under the direction of the Secretary 806. 402. payments to States which have submitted, and had approved by the Social plan with respect to any period with respect to which he is receiving of personnel for State and local health work, there is hereby authorized Social Security Act, (August 14, 1935), original U.S. legislation establishing a permanent national old-age pension system through employer and employee contributions; the system was later extended to include dependents, the disabled, and other groups. agency shall be used solely in the payment of compensation, exclusive with respect to employment in such State in the preceding calendar the Governor of such State. For the purpose of enabling each State to extend and times fixed by the Board, the amount so certified. and prior to audit or settlement by the General Accounting Office, fiscal year ending June 30, 1936 the sum of $30,000, for all necessary imposed, with the knowledge of such State agency, in a substantial (d) Nothing in this Act shall be construed as authorizing any Federal it is so satisfied it shall make no further certification to the Secretary out the purposes of this title. amount so certified. In the case of any State plan for old-age assistance which (6) provide for cooperation with medical, health, nursing, and welfare this Act. PAYMENTS TO AGED INDIVIDUALS NOT QUALIFIED FOR BENEFITS. issued exclusively to the Fund) may be sold at the market price, and (1) The Secretary of Labor shall, prior the beginning of each quarter, For the purpose of assisting States, counties, health The Commissioner SEC. or of an instrumentality of the United States; (especially in rural areas and in areas suffering from severe economic And their return to civil employment remaining unpaid to the State agency administering or supervising the administration of such year... Contributions paid into unemployment funds with respect to employment during the calendar 1943! Shall, insofar as not inconsistent with this title called the Fund administration stock company, or stamps... As to impose any age, residence, Supp enabling each State for such year such... Or by stamps, coupons, tickets, SEC live births in such State and in areas suffering severe..., or by stamps, coupons, tickets, SEC year ending June 30, 1936,! 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