Social Security

Friday, July 28, 2006

Received this on my email today and thought it was interesting...

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.

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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 government 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 doing all this lying and thieving and violating
of 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!

==============================================

6 Comments:

Blogger Jon said...

It is not surprising that the Democrats are attempting to blame the Republicans for the Social Security fiasco, because they know there liberal base won't bother to investigate for themselves and will believe everythign they are told,especially if it blames the Republicans.

1:37 PM  
Anonymous msdedi said...

awesome and amazing... thank you for the succinct fact telling

1:38 PM  
Blogger Pikkel Weezel said...

Not surprising

2:00 PM  
Blogger Jon said...

It is quite amazing how the Democrats can attempt to put all that has gone wrong with the Social Security on the Republicans after reading your entry.

10:03 AM  
Anonymous Anonymous said...

Wow, I didn't know any of this. How could we have gone so wrong?

10:43 AM  
Blogger James said...

because they know there liberal base won't bother to investigate for themselves and will believe everythign they are told

Ahh... but a little investigation into the facts in this post shows a similar patter for those of us on the right, namely those who jumped on board in the comments of this post.

A little research shows the following:

That participation in the (FICA) Program would be completely voluntary.

There
was no provision in the Social Security Act of 1935 (nor has there ever been any provision) for the payment of Social Security payroll taxes (now commonly known as FICA, from an acronym for the Federal Insurance Contributions Act) to be voluntary. Since the inception of the Social Security program, the law has required that payroll taxes for persons working at jobs covered by Social Security "shall be collected by the employer of the taxpayer by deducting the amount of the tax from the wages as and when paid."

. . . participants would only have to pay 1% of the first $1,400 of their annual incomes into the Program

Social Security taxes were never limited to the first $1,400 of annual income, nor was there any provision in the Social Security Act of 1935 to permanently fix the tax rate at 1%. The Social Security Act of 1935 set the original rate at 1% of the first $3,000 of annual income, with provisions to gradually increase that rate to 3% over the next twelve years:

1) With respect to employment during the calendar years 1937, 1938, and 1939, the rate shall be 1 per centum.

2) With respect to employment during the calendar years 1940, 1941, and 1942, the rate shall 1 1/2 per centum.

3) With respect to employment during the calendar years 1943, 1944, and 1945, the rate shall be 2 per centum.

4) With respect to employment during the calendar years 1946, 1947, and 1948, the rate shall be 2 1/2 per centum.

5) With respect to employment after December 31, 1948, the rate shall be 3 per centum.

As of 2005 participants pay 6.2% of the first $90,000 of their income (with their employers contributing a like sum) into what is commonly known as OASDI (from an acronym for Old Age Survivors and Disability Insurance, the official name of the basic retirement benefits portion of the Social Security program).

...the money the participants elected to put into the Program would be deductible from their income for tax purposes each year

The original Social Security Act of 1935 specifically stated that Social Security payroll taxes were not to be allowed as income tax deductions:
For the purposes of the income tax imposed by Title I of the Revenue Act of 1934 or by any Act of Congress in substitution therefor, the tax imposed by section 801 shall not be allowed as a deduction to the taxpayer in computing his net income for the year in which such tax is deducted from his wages.

Social Security payroll taxes have never been deductible from income for tax purposes, either when the program was originally instituted or at any time since.

...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

The Social Security Trust Fund was established in 1939 to receive monies collected for Social Security through payroll taxes. The monies in this fund are managed by the Department of the Treasury; they are not, nor have they ever been, put into the "general operating fund."

...the annuity payments to the retirees would never be taxed as income

While it IS true that SS Benifits were not originally considered Taxable income, it was NOT a promise or an act on the part of President Roosevelt, nor was it specified in the Social Security Act (or any other law); it was the result of a series of rulings by the Treasury Department in 1938 and 1941 that excluded Social Security benefits from federal income taxation. Those rulings were overriden by amendments to the Social Security act enacted in 1983.

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.


As noted above, the monies paid into the Social Security trust have never been "put into the general fund." The requirements for how the Social Security Trust Fund is to be financed and invested have not changed since the fund's inception in 1939.

The method of accounting for the Social Security Trust Fund in the federal budget was reversed in 1990.

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

A: The Democratic Party.


As noted above, Social Security withholding has never been deductible from income for tax purposes. The original Social Security Act of 1935 specifically stated that monies paid into Social Security via payroll taxes were not to be allowed as income tax deductions.

Q: Which Political Party started taxing Social Security annuities?

A: The Democratic Party.


Prior to 1984, income derived from Social Security benefits was exempt from taxation. Amendments to the Social Security Act passed by Congress in 1983 allowed for 50% of Social Security benefits to be considered taxable income for taxpayers whose total income exceeded specified thresholds.

Responsibility for this change cannot fairly be assigned to either political party. The idea originated with a proposal issued by the Greenspan Commission, which had been appointed by President Ronald Reagan, a Republican. The amendments were passed by a House of Representatives in which the Democrats held a clear majority of the seats (296-166), but the proposed amendments received "Yea" votes from members of both parties, and they were signed into law by President Reagan.

Q: Which political party increased the taxes on 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 U.S.


In 1993, Congress passed legislation that increased the percentage of Social Security benefits subject to taxation from 50% to 85%. As with the 1983 amendments to the Social Security Act, this increase applied only to taxpayers whose total income exceeded specified thresholds.

This change to Social Security was but one element of the massive Omnibus Budget Reconciliation Act (OBRA) introduced in Congress in 1993. OBRA was barely passed by a 218-216 vote in the House of Representatives, with not a single Republican voting in favor of it (although 41 Democrats voted against it). Likewise, the Senate vote on OBRA was deadlocked at 50-50 (again, with not a single Republican voting in favor of it, although 6 Democrats voted against it) until Vice-President Al Gore (a Democrat) cast the deciding "Yea" vote. The bill was signed into law by President Bill Clinton (also a Democrat).

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

A: That's right! Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive SSI Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it!


NO ONE — whether he be a citizen, immigrant, or illegal alien — is eligible to collect Security benefits unless he (or someone else, such as a parent or spouse) has paid into the system.

You're confusing Social Security with Supplemental Security Income (SSI) — the latter is a federal welfare program "designed to help aged, blind, and disabled people, who have little or no income" by providing "cash to meet basic needs for food, clothing, and shelter." Immigrants can qualify for SSI benefits under certain conditions, but SSI is financed by general revenues and not Social Security taxes. SSI was not enacted by the administration of President Jimmy Carter (a Democrat); it was created and signed into law in 1972, during the administration of President Richard Nixon (a Republican).
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C'Mon guys, I know it's a TON of fun to pin the left up against a wall, but don't slam them for not checking their facts (which they DON'T do quite often) when you haven't done your own.

11:31 AM  

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