Social Security Facts? Are these true??

Question

Franklin Roosevelt, a Democrat, introduced the Social
Security (FICA) Program. He promised that: participation would be voluntary; participants would only have to pay 1% of the first $1,400 of their annual incomes into the program; the money the participants elected to put into the program would be deductible from their income for tax purposes each year; money put into the program would only be used to fund the Social Security Program and no other government program; and that the annuity payments to the retirees
would never be taxed as income.

Who took Social Security from the Independent "Trust Fund" and put it into the general fund so Congress could spend it? Lyndon Johnson and the democratic Congress.

Which party eliminated the income tax deduction for FICA withholding and starting taxing Social Security annuities? Democratic.

Which party started giving annuity payments to immigrants that hadn't paid into the fund? Jimmy Carter and the Democratic Party.

Thanks Laissez-Faire Guy for your very informative answer and your optimism. I wasn't trying to complain; I was just looking for some other perspectives.

Lestermount - I do realize that most politicians are crooked and just want to be elected, and I agree that both sides are guilty. I was forwarded this e-mail and was trying to get another point of view.

Carol P - If that is true about having to pay back your SS the month before you die, that is nuts! Thanks for the info.

Wayne - I definitely don't believe everything I read online or see on TV, and I like to get other points of view before I form my own. Thanks for the response.

Answer 1

I don't think SS contributions were ever voluntary.

Look at the trust fund this way. SS needs to build up a reserve for all the baby boomers. It does this by setting the contributions high. This trust fund needs to be invested somewhere. I suppose you could just lock it all up Fort Knox somewhere, but that's harmful to the economy by taking that money out of circulation, and the money would lose value every year through inflation.

So you have to invest it. You could invest it in the private stock and bond markets, or you can buy the safest investments known to man. That being US Treasuries. So if you take the trust fund and buy treasuries, you are loaning the gov't money to spend into the general fund.

Bottom line, people will be complaining no matter where you invest. Remember when Bush tried to privatize accounts, and everyone was jumping all over him about how the fat cats on Wall St. would get rich and the bringing up Enron, etc.?

Ideally, FDR should have set this up as Private accounts, where money must be diversified across stocks, bonds, US Treasuries, etc. But we can't hop back in time and fix that.

Here's the dirty little secret no one ever talks about. When those Treasuries need to be redeemed to pay SS benefits, the gov't can sell that debt again. A billion of debt is sold worldwide to pay the billion being redeemed by SS for benefits. The national debt remains the same, but SS retirees get their benefits.

In fact, we never have to pay the national debt off. If we stopped adding to it next year, the GDP and tax revenues would keep growing, and the debt would continue to be rolled over. Servicing the debt would take less and less of a bite out of the yearly federal budget. Right now it's about 10%. If we balanced the budget next year, and kept it balanced, in 20 years, that same debt maybe would take only a 3% bite of the federal budget.

Answer 2

FDR set up soc. sec. to get older workers to retire so there would be jobs for younger people.
It went from a retirement fund to a disability and dependents fund as most actions in Washington to get votes.
Both parties are guilty of using the trust fund, which did not and does not exist and put the money into the general treasury account.
The Dem's did start taxing benefits and also limit benefits to people, who even though they pay into soc. sec. do not need it so they should not be getting the money because someone else is entitled to it.

Your premise is correct, but realize that all politicians main objective is to get reelected, not serve the public.

Answer 3

This system is broke they can't fix it. To far gone.
and did you know that IF you do get SS when you retirer.
you have to pay back the last month you got if you die?
so if you die in Dec you or your family has to pay back Nov.
check!! not fair. how do you know when it well happen.??
Oh OK !! and were does the money go from the once who are illegal they get it taken out month but don't file at the end of the year. People useing other peoples SS#. Yes, this is happening and the goverement knows it. But they get money. it's in a shh fund. On avg. there are 15 to 37 people useing your SS# and you don't even know it.

Answer 4

they can't deny you by way of fact of race, faith, or any actual handicap, ie, belongings you have actual 0 administration over. considering that landlords have the excellent to run credit tests (and that i dont blame them, could you like somebody with crappy credit who cant pay his costs renting from you? in all probability no longer, you're able to look too) they'd ask on your social. in the event that they cant get your social to run the credit/safety tests, then absofreakinglutely they'd deny you

Answer 5

1) Don't believe everything you read online.

2) Which President signed the bill in to law taxing Social Security for many recipients in 1986?
Ronald Reagan - Republican

The Right Wing nutjob websites tend to ignore that one........

Historically, it has always been the Democrats who have wanted to lift people out of poverty and the Republicans who pretty much say "You're Poor....Tough ****.....Now get out of the way....You are blocking my Mercedes...."

Answer 6

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