In a broad view it is called an entitlement: An Entitlement is a guarantee of access to benefits because of rights, or by agreement through law. It also refers, in a more casual sense to someone’s belief that one is deserving of some particular reward or benefit. The legal term, however, carries no value judgment. It simply denotes a right granted.
Some time ago I heard a panel of scholars debating Social Security refer to it as a "welfare" program. I came into the System just over four years ago so I have been on the Social Security roles and my company pension supplemented by my IRA fund since that time.
Welfare! I sure don't see it that way. That definition is: Welfare (financial aid) is financial assistance paid by taxpayers to people who are unable or unwilling to support themselves.
That sure isn't the case for me! I am afraid I see this thing called Social Security TOTALLY differently. At the young age of 16 I began working and paying Social Security taxes (not voluntary I might add). Starting in 1966 I began paying a Medicare withholding tax as well.
Save for a break for military service that continued until I was 63 years old, some 44 years in all. I saw this "withholding" as premiums that I paid, for an insurance policy so that once I reached retirement age (when my part of the policy matured) I would receive a benefit payment to help sustain me into my senior years. I asked for no handout! I paid my part to sustain that fund so I could receive that benefit!
If what we are being told is true then Social Security is in serious financial trouble and according to its trustees we are going to have to be ready for some serious change and/or reduction of recipients' benefits to survive past 2037. Do you want to know WHY it’s in the shape it is, well here are your answers and I guess I will let you be the judge of which of our political parties got it this way.
You’re Social Security
Just in case some of you are too young and didn't know this. It's easy to check out. Be sure and show it to your kids. They need a little history lesson on what's what and it doesn't matter whether you are Democrat or Republican.
Facts are Facts!!! Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program. He promised:
1.) Participation in the Program would be completely voluntary.
2.) 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, would only be used to fund the Social Security Retirement Program, and no other Government program.
5.) That the annuity payments to the retirees would never be taxed as income.
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 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 PERSONAL FAVORITE:
A: That's right, Jimmy Carter and the Democratic Party. When immigrants moved into this country, and reached age 65, they 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 violating all the precepts 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!
Oh and after all that CONGRESS HAS GIVEN THEMSELVES a 100% RETIREMENT FOR ONLY SERVING ONE TERM!!!
So how DO we fix this? First, the Social Security fund needs to be restored to its original intent. Legislation needs to be enacted that prevents Congress from borrowing from the excess funds generated. Second call in aLL IOU's that are outstanding. Then freeze that borrowing.
Remenber Social Security is not part of the Federal Budget general fund. It is a separate account and has its own source of income. Social Security payments do not go into the general fund, they go in the Social Security trust fund, and should NOT be counted as general revenue. The trust fund is supposed to be used to pay future benefits.
But....keep reading....Currently, there is more being payed into the Social Security Trust Fund than is being paid out to beneficiaries. What's left over is routinely being "borrowed" and used as if it were general budget revenue. Government agencies using that money promise to pay it back (IOUs). All current IOU's need to be called due immediately and the fund reimbursed. If you check you will find that Ronald Reagan signed H. R. 4331 enacting those borrowing changes in December 1981.
FOOTNOTE:
All of the money in the Social Security Trust Fund has been spent! That's part of the National Debt. So Social Security is just a very large tax collection tool. Beware the term "Social Security Surplus"; there is no such thing. So is Social Security an enormous Ponzi Scheme? There is never more in the Trust Fund than will ever be needed so it sure fills the criteria.
A Ponzi scheme is an investment operation that involves promising or paying abnormally high returns ("profits") to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business. Hum!
1 comment:
Now this pretty much says it all
Post a Comment