History Lesson on your Social Security Card

by Staff

We attempt clarification on some of the social security fund claims going around.  Here's some hard facts from the Social Security Administration.  Keep in mind that social security's responses below deal extensively with what the law actually says not what Roosevelt or his party may have claimed or promised.  This is an important distinction to bear in mind.  The SSA results depicted herein offer an excellent case for a single political party with common global objectives governed left of political center.

Be sure and share this with your family and friends. They need a little history lesson on what's what and it doesn't matter whether you are Democrat or Republican. Facts are Facts.

An old Social Security card with the "NOT FOR IDENTIFICATION" message.

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

1.) That participation in the Program would be Completely voluntary,  No longer Voluntary

SSA Facts Reports: "In the early years of the program, however, only about half the jobs in the economy were covered by Social Security. Thus one could work in non-covered employment and not have to pay FICA taxes"

"The tax rate in the original 1935 law was 1% each on the employer and the employee, on the first $3,000 of earnings. This rate was increased on a regular schedule in four steps so that by 1949 the rate would be 3% each on the first $3,000. The figure was never $1,400 and the rate was never fixed for all time at 1%. (The text of the 1935 law and the tax rate schedule can be found elsewhere on our website.)"

2.) That the participants would only have to pay 1% of the first $1,400 of their annual Incomes into the Program,   Now 7.65% on the first $90,000

SSA Facts Reports: "The tax rate in the original 1935 law was 1% each on the employer and the employee, on the first $3,000 of earnings. This rate was increased on a regular schedule in four steps so that by 1949 the rate would be 3% each on the first $3,000. The figure was never $,1400, and the rate was never fixed for all time at 1%."

3.) That the money the participants elected to put into the Program would be deductible from  their income for tax purposes each year,  No longer tax deductible

SSA Facts Reports:  "There was never any provision of law making the Social Security taxes paid by employees deductible for income tax purposes. In fact, the 1935 law expressly forbid this idea, in Section 803 of Title VIII."

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,  Under Johnson the money was moved to The General Fund and Spent

SSA Facts Reports:  "The idea here is basically correct. However, this statement is usually joined to a second statement to the effect that this principle was violated by subsequent Administrations. However, there has never been any change in the way the Social Security program is financed or the way that Social Security payroll taxes are used by the federal government..."

"The Social Security Trust Fund was created in 1939 as part of the Amendments enacted in that year. From its inception, the Trust Fund has always worked the same way. The Social Security Trust Fund has never been "put into the general fund of the government."

However, we've heard from members of Congress like Dick Gepheart and a host of others how government had to act to save socila security.  So, if it's a trust fund dedicated to that purpose, what's to save?

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

SSA Facts Reports:  "Originally, Social Security benefits were not taxable income. This was not, however, a provision of the law, nor anything that President Roosevelt did or could have "promised." It was the result of a series of administrative rulings issued by the Treasury Department in the early years of the program. (The Treasury rulings can be found elsewhere on our website.)"

"In 1983 Congress changed the law by specifically authorizing the taxation of Social Security benefits. This was part of the 1983 Amendments, and this law overrode the earlier administrative rulings from the Treasury Department. (A detailed explanation of the 1983 Amendments can be found elsewhere on our website)"

Which Political Party started taxing Social Security annuities?  

SSA2 Reports:  "The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote. The basic rule put in place was that up to 50% of Social Security benefits could be added to taxable income, if the taxpayer's total income exceeded certain thresholds."

"The taxation of benefits was a proposal which came from the Greenspan Commission appointed by President Reagan and chaired by Alan Greenspan (who went on to later become the Chairman of the Federal Reserve).  The full text of the Greenspan Commission report is available on our website.

President's Reagan's signing statement for the 1983 Amendments can also be found on our website."

Which political party increased the taxes on Social Security annuities?  The Democrat Party, with Al Gore casting the 'tie-breaking' deciding vote as President of the Senate, while he was Vice President of the US

TRUE SSA2 Reports:  "In 1993, legislation was enacted which had the effect of increasing the tax put in place under the 1983 law. It raised from 50% to 85% the portion of Social Security benefits subject to taxation; but the increased percentage only applied to "higher income" beneficiaries. Beneficiaries of modest incomes might still be subject to the 50% rate, or to no taxation at all, depending on their overall taxable income. This change in the tax rate was one provision in a massive Omnibus Budget Reconciliation Act (OBRA) passed that year. The OBRA 1993 legislation was deadlocked in the Senate on a tie vote of 50-50 and Vice President Al Gore cast the deciding vote in favor of passage. President Clinton signed the bill into law on August 10, 1993."

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

SSA2 Reports: "Neither immigrants nor anyone else is able to collect Social Security benefits without someone paying Social Security payroll taxes into the system. The conditions under which Social Security benefits are payable, and to whom, can be found in the pamphlets available on our website."

The question confuses the Supplemental Security Income (SSI) program with Social Security. SSI is a federal welfare program and no contributions, from immigrants or citizens or anyone else, is required for eligibility. Under certain conditions, immigrants can qualify for SSI benefits. The SSI program was an initiative of the Nixon Administration and was signed into law by President Nixon on October 30, 1972.