Social Security was established under Franklin Roosevelt. It was supposed to be voluntary. Participants who chose to participate would only have to pay 1% of their first $1400.00 into the fund. The money the participants elected to put into the program was Income Tax Deductable. The Social Security Card was not to be used for identification. My first card boldly stated that on my first card back in 1956. The money placed into program was to be placed in an independent trust fund. It could be used for no other purpose.
If this plan had been continued Social Security would be a great investment. But sadly, it is no longer the case. What happened ? I believe in giving credit where credit is due. Who has been responsible for the changes made in Social Security which has put it in danger of insolvency ?
Lyndon Johnson made the first change in the program. He had the trust fund moved into the General Fund. Since individuals are now required to pay Social Security Taxes, this amounts to a fraud. If it were a private investment firm, the CEO and Board would be in danger of serious jail time. Congress, thanks to President Johnson, is running a Ponzi Scheme on the working public.
Under President Clinton, it was decided that benefits could be taxed. Leave it to the Government to not allow any income source to be untaxed if possible. Of course those who paid the funds into Social Security had already paid taxes on them. This amounts to double taxation.
What about people raiding the Social Security Fund who never put a dime into it ? Today, immigrants can move into the country and never pay a dime into Social Security, yet, at 65 they can begin receiving payments. The credit for this boondoggle goes to President Carter.
Let’s review because we want to give credit where credit is due. Credit goes to Lyndon Johnson and Al Gore who cast the deciding vote to tax Social Security Benefits. The Democratic party eliminated tax deduction for paying into Social Security. Jimmy Carter opened the fund to those who never paid a penny into the fund. The score is: Democrats 4, Republicans 0.
Social Security is in trouble today because of these decisions. But rather than receive the applause for their actions the Democrats want to give all the praise to the Republicans. Isn’t their humility heart warming ?
Dale C. Flowers
P.O. Box 904
Hendersonville, TN 37077
Dale's thoughts are timely when considering Mr. Obama's recent remarks that Social Security checks might not go out in August if the Federal Government's debt ceiling isn't raised.