Social Security refresher

[sammy the sage]

an interesting e-mail sent to me...will be an eye-opener for a few of you!

Our Social Security

Franklin Roosevelt, a Democrat, introduced the Social
Security (FICA) Program. He promised:

1.) That participation in the Program would be
Completely voluntary,

2.) That the participants would only have to pay
1% of the first $1,400 of their annual
Incomes into the Program,

3.) That the money the participants elected to put
Into the Program would be deductible from
Their income for tax purposes each year,

4.) That the money the participants put into the
Independent "Trust Fund" rather than into the
General operating fund, and therefore, would
Only be used to fund the Social Security
Retirement Program, and no other
Government program, and,

5.) That the annuity payments to the retirees
Would never be taxed as income.


Since many of us have paid into FICA for years and are
Now receiving a Social Security check every month --
And then finding that we are getting taxed on 85% of
The money we paid to the Federal govern ment to "put
Away" -- you may be interested in the following:

---------------------------------------------------------- ---

Q: Which Political Party took Social Security from the
Independent "Trust Fund" and put it into the
General fund so that Congress could spend it?

A: It was Lyndon Johnson and the democratically
Controlled House and Senate.

--------------------------------------------------------------------
Q: Which Political Party eliminated the income tax
Deduction for Social Security (FICA) withholding?

A: The Democratic Party.

-----------------------------------------------------------------------

Q: Which Political Party started taxing Social
Security annuities?

A: The Democratic Party, with Al Gore casting the
"tie-breaking" deciding vote as President of the
Senate, while he was Vice President of the US

-------------------------------------------------------------------

Q: Which Political Party decided to start giving
Annuity payments to immigrants?

AND MY FAVORITE:

A: That's right!

Jimmy Carter and the Democratic Party.
Immigrants moved into this country, and at age 65,
Began to receive Social Security payments! The
Democratic Party gave these payments to them,
Even though they never paid a dime into it!

----------------------------------------------------------------------

Then, after violating the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away!

And the worst part about it is uninformed citizens believe it!

AND CONGRESS GIVES THEMSELVES 100% RETIREMENT FOR ONLY SERVING ONE TERM!!!

A government big enough to give you everything you want, is strong enough to take everything you have.
-Thomas Jefferson

[sammy the sage]

Of course I have to e-mail my mother back this...

http://www.snopes.com/politics/taxes/sschanges.asp

[Tom]

The dems no nothing but tax,tax,tax.

[dylbert]

Don't despair, sammy, just because some of the facts were mistated and corrected, Social Security still has its issues and problems.

SS is an income redistribution mechanism designed to transfer income from workers to non-workers. It is more Ponzi scheme than social or security program. As long as economy and population grew, no one would ever conceive that problems would ever arise. Alas, in 1935 no politician or administrator could foresee biggest social change that would alter SS forever. That change? Widespread availability of effective, legal contriceptives for birth control. Birth rate decline, inflation, oil crisis and stagflation, and war with resulting deaths all contribute to lessen long-term viability of any such system.

The rate has climbed to 7.65 percent from employee and 7.65 percent from employer today (this amount includes Medicare portion). Please start laughing! How many folks have had employer talk about company contribution to SS as "benefit." It is not. One pays this amount in form of lower wages each and every paycheck.

Some other miscellaneous facts -- US military did not initially participate just as many state & local governments do not participate in Social Security system. Later, Congress mandated that military "contribute." This increase current funds available and increased numbers of future recipients, too.

SS taxes (FICA contributions, if you insist) are one of the most regressive taxes on working poor. How can someone escape poverty when first dollar is taxed at 15.3 percent? If one adds sales taxes in many locales, currently 9 percent where I live, working poor pay 24.3 percent consumption tax today. If you think that is fair, I probably do not understand your value system! Before someone chirps Earned Income Credit, EIC is an attempt to level that playing field but has its own flaws as well.

My interest in this subject began in mid-1970s when I wrote paper for Public Finance class about Social Security and how it works and how it doesn't work. SS still needs broad changes to correct inequities and promote its long-term viability. I re-wrote paper in 1980s in graduate school. During Reagan Administration when tax cuts were enacted, Congress missed excellent opportunity to tweak SS and unburden working poor. Neither Democrat majority Congress nor Republican president could recognize this situation. Today, this problem persists. Do you hear any presidential candidate, Democrat or Republican, speaking about his issue? I don't.