History of Social Security
Social Security cards used to say “not to be used for identification.” Mine does.
When introduced by President Roosevelt, the program was said to be voluntary.
Participants paid only 1% of the first $1400 of their annual income.
Payments to social security were tax deductible.
The social security trust fund was said to be used only for social security payments.
Payments made from social security to retirees would not be taxable.
Social Security is now a 7.65% mandatory tax on the first $90,000 of income, which means it’s a tax on 100% of most people’s income. It’s no longer tax deductible and 85% of payments received from social security can be taxed – ‘again.’ And, as part of the general fund, can virtually be used for any budgetary purpose, so long as there’s a promise of repayment.
The security of social security is one of the many reasons America must stop spending that exceeds tax revenue. Margaret Thatcher said it best, “The problem with socialism is you eventually run out of other people’s money.”
America will soon run out of everybody’s money.