Our Social Security

By Contributor Archive

Filed Under Congress, Domestic Policy, Policy on Feb 6 

Just in case you are not aware of the history of Social Security let me inform you of the facts.

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

1.) That participation in the Program would be completely voluntary.
The program is no longer voluntary.

2.) That the participants would only have to pay 1% of the first $1,400 of their annual incomes into the program.
Now you pay 7.65%. (plus your employer pays 7.65%)

3.) The money the participants elected to put into the program would be deductible from their income tax each year.
This money is no longer tax deductible.

4.) 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.
Under Johnson the money was moved to the General Fund to be spent.

5.) The annuity payments to the retirees would never be taxed as income.
Under Clinton and Gore, Up to 85% of your Social Security can be taxed.

Since many of us have paid into FICA for years and are now receiving a Social Security check every month, only to find out 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 Democratic controlled House and Senate.

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

Q: Which Political Party started taxing Social Security annuities?
A: The Democrat Party, with Al Gore casting the ‘tie-breaking’ deciding vote as President of the Senate, while he was Vice President.

Q: Which Political Party decided to start giving annuity payments to immigrants?
A: Jimmy Carter and the Democrat Party. Immigrants moved into this country, and at age 65, began to receive Social Security payments! The Democrat Party gave these payments to them, even though they never paid a dime into it!

After violating the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away! The worst part about it is uninformed citizens believe it!

Therefore, I propose the Social Security Reform Act. This act will repair the damage the Democrats did which undermined the very program they started.

1. The program will revert to a voluntary status in that you can now choose to divert 10% of the money put into FICA into a private account in your name to be used to buy into the bond fund of your choosing in the first five years of the program with an aditional 10% availible to divert every five years thereafter until 100% of the money is placed into private accounts. At the age of 65 you may start recieving annuity payments until that fund is paid out in full.

2. The percentage per person and employer shall be forever fixed at 4% each of annual income before taxes.

3. FICA funds shall again be deductable before any tax rate is employeed.

4. All FICA funds shall again be locked away from the General Fund. The first part as a private personal account and the second to fund FICA payments to current recipients until FICA is completely privatized.

5. All annuity payments to retirees will be taxed at a flat 10% rate.

There you have it. I invite your comments.

Comments

  • The Saints!!!!

    Never. Going. To. Happen.

  • Troy La Mana

    At least this way if someone starts to pay into Social Security at age 20 by the time they reach retirement age of 65 they could divert 100% of the funds into their own account. Thus, in just 45 years all of Social Security would be privatized.

  • Brian H

    The concept of “social” security…….”social” justice…..all for the “social” good. How about “social” college tuition, “social” health insurance, “social” housing, “social” food distribution.

  • Liz

    Privatize all of it. Shut down the bureaucracy. Doesn’t take a brain trust to see this is a rip-off in addition to being rife with corruption.

  • Sartho

    When the annual SS statement came earlier this year, on the front page was a lovely little article about how Social Security isn’t ever going to run out of money. It basically summarized how there will always be people paying into it so there’s always going to be something paid out. And then it broke down the numbers behind it ….

    For every $1000 each individual pays in, they only get $700 and change back (I don’t remember the specific number, but it was less than $750). So, we all end up with a 25% LOSS. I’m not sure that’s a wise financial investment.

  • http://twitter.com/theatomicmom East of Eden

    These are really good facts about the program and solutions as well. I would like to point out again this is yet another example of how the Dems have created a narrative about SS and determined the story line. Serioulsy, GOP — get on the ball and get some balls and try a little harder with getting thru truth out!!

    As for SS. My last year teaching we talked about this and how the kids and I would never see a dime of what we were paying into the system. One of my “brighter” students suddenly had the lights turn on in his brain. He put it all together and said, “So, we’re not getting any of this money? That’s so messed up!!” It was a moment of brilliance for this kid.

    I wished you would have mentioned the City of Galveston TX. In 1981, they gave their employees the option of opting out of SS payments, but the condition was they had to invest that money themselves. The people who did this made out far better than people who left their money with FICA/SS