Snopes.com?

Question

I received the following email. Is the information true?

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 from the participants would be 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.

The Democratic party is responsible for going back on his word in all these respects--yet say the Republicans are responsible for the Soc. Sec. mess.

Answer 1

<>Since you referenced it, here is the Snopes answer to your "questions:" http://www.snopes.com/politics/taxes/sschanges.asp

Answer 2

Regarding paragraph 4 - and the "Trust Fund" Originally, Social Security was a pay as you go system - what went in was immediately paid out in benefits. - This permitted benefits to start being paid shortly after the system was established which was politically popular. Additionally, by saying there was a trust fund, workers would be discouraged from asking for more benefits from general revenues. They would get only what was in their trust fund, which would be entirely financed by the Social Security tax on wages. In 1983, as a result of the Social Security reform act that was passed that year - social security taxes were increased by about 1/3 and the trust fund for the first time started to build up a big surplus which was to be used to fund the retirement of the baby boom generation. - However, all the money in the trust fund (several trillion dollars) has been borrowed by congress and spent, and congress has no plan in place to pay it back. This borrowing has masked the true size of the federal budget deficit.

Answer 3

The Democrats have the most convenient memories I've ever seen. They'd like you to forget the Bill Clinton raped the Social Security Trust Fund to produce his famous balanced budget. Now, the fund will be used up by the time most of you get around to retiring.

Answer 4

Social Security was enacted in the 1930's. Promises or representations made by dead Democrats before the bill was in its final form are totally irrelevant.

Answer 5

I don't know if your facts are facts or not, but rather than going back 74 years since the SS started, just go back six years and look at what the Republicans have done to our economy and our national debt.

Answer 6

Compare rates free

Answer 7

This question has too much reading in it