1 This history does not include the pension system under Public No. 2, 73d Cong.
(VR 1(a) pt. III) concurrently in force with the exclusively SAW pension system set
forth herein from Mar. 28, 1934, to Jan. 1, 1958. Also, reference is omitted to right of
SAW veterans to elect the pension system provided for veterans of World War I (38 U.S.C.
512(a)(3)).

2 Data taken from Commissioner of Pensions Annual Reports (1921-30) and Adminis

88. 04

trator of Veterans' Affairs Annual Reports (1931- ). Tables in 3 reports vary in
method of presentation and in data presented, however, the figures used are close approxi-
mations.

3 Calculated on total disability rate for veterans with 90 days' service. 4 Except total.

Public Law 85-56 (Jan. 1, 1958)

90 days.

Aid and attendance. 70 days.

Aid and attendance.

STAFF DIRECTOR. Mr. Chairman, may I ask that there be included in the record excerpts from a table furnished the committee by the Internal Revenue Service, and a table showing expenditures in fiscal years 1964 through 1967 for the compensation and pension programs.

The data furnished by Internal Revenue Service relates to income tax returns filed in the year 1964. It will be noted that of the total taxable income tax returns filed in that year, 9,025,611 reported adjusted gross income under $3,000. Total adjusted gross income reported for this group was $17,424,307,000, and total taxable income was $7,137,530,000. Income tax paid by this group, after credits, amounted to $1,162,254,000. It is interesting to note that the actual cost of the pension program in fiscal year 1964 was $1,739,925,413, and the projected cost of the pension program in 1967 is estimated at $1,982,649,000. Pension is not payable at the present time, nor was it payable in 1964, to a veteran or widow with dependents when annual income other than pension is in excess of $3,000. If this income limitation is met the individual is considered to be in need and therefore eligible to receive additional income in the form of pension. Yet the taxes collected in 1964 from other 9 million taxpayers whose income was in this same category was less than $600 million below the amount needed to cover the cost of the entire pension program in that fiscal year.

Mr. DORN. Without objection, it is so ordered. (The tables referred to follow:)

INDIVIDUAL INCOME TAX RETURNS FOR 1964, ADVANCE DATA TABLE, INTERNAL REVENUE SERVICE, STATISTICS DIVISION, DECEMBER 1965

TABLE 1.—Number of returns and number of exemptions, adjusted gross income, selected sources of income, taxable income, and income tax, by adjusted gross income classes

1 Adjusted gross income less deficit.

? Estimate is not shown separately because of high sampling variability. However, the data are included