It’s true that money is managed differently for social security contributions but my point was as long as you pay taxes for something you should receive something for it, in SS’s case it is the promise of income in the future. I don’t believe that is a string enough commitment when you consider how SS has been managed the last 50 years.
Which is a huge reason why I described that transition away from SS
Unfortunately the government has a lot more information on your than your income, this just prevents you from hiding money from the U.S. government the only info they’d be receiving is the info you give them when you do your taxes every year. The difference is that we will get tax returns for people on the NIT program (typically low income people or people claiming to have a lower income than they really have).
What about my plan hurts retirees? It gives them more money than they receive now on social security and for people not currently retired the tax decreases. And people dying before receiving their benefit is the biggest issue, it makes no sense to put money in for 40 years to get nothing if you pass early.
You can’t say it doesn’t need an overhaul and then say we should have the government contribute $7,000 at birth to every citizen. That’s an overhaul.
You love name calling but I wish I could get some substantive input from you, why is the CURRENT SS policy better than what I have proposed?
Do you think this would be a decent solution to the what to do about it issue?
Kinda like what I proposed?
Social security and Medicare are earned by payments withheld from the individual workers salary. Welfare, housing supplement, and food stamps are NOT funded by the recipients but straight out of tax dollars! Just in case some of you young whippersnappers (& some older ones) didn’t know this. It’s easy to check out, if you don’t believe it. Be sure and show it to your family and friends. They need a little history lesson on what’s what and it doesn’t matter whether you are Democrat or Republican. Facts are Facts. We need to return to the original social security rules!
Franklin Roosevelt, a Democrat, introduced the financial “safety net” for older Americans, Social Security was established in 1935 by the Social Security Act. Before then support for the elderly wasn’t a federal concern - it mostly fell to states, towns and, of course, families. Part of the reason for the program was to encourage the elderly in the work force to retire and allow younger citizens to get the jobs vacated while providing the elderly an ongoing income high enough they wouldn’t need so apply for other social program support, nor live in a state of poverty.
To qualify for Social Security retirement benefits, while employed a worker must accumulate 40 quarters of coverage (QCs), which takes at least 10 years because no more than 4 QCs can be credited in any year; you receive benefits later on at a retirement age based on when you were born. Contributions take the form of the Federal Insurance Contributions Act (FICA) taxes withheld from most paychecks.
The original government promise/ contract didn’t last long.
1.) Participation in the Program would be completely voluntary [No longer voluntary],
2.) Participants would only have to pay (1936) 3 cents a dollar up to 3000 a year and that will be the most you will ever pay. (1937) 2 percent rate. Now 7.65% matched by employer or on the first $90,000, or 15% on the first $90,000 if you’re self-employed],
3.) The money participants elected to put into the Program would be deductible from their income for tax purposes each year [No longer tax deductible],
4.) The money participants contributed went into an 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 [Under Johnson the money was moved to the General Fund and Spent or loaned interest free thus stealing the compounded interest], and
5.) The earned benefit annuity payments to retirees would never be taxed as income [Under Clinton & Gore up to 85% of your Social Security can be Taxed].
Since many have paid into FICA for years and some of us are now receiving a Social Security check every month — and finding it is getting taxed on 85% of the money paid to the Federal government to ‘put away’ — you may be interested in the following:
Q: When did spousal and children payments become authorized following wage earners death?
A: In 1939 recipients were expanded and coverage beyond the worker provided in effect becoming a type of “life insurance” coverage.
Q: Which Political Party took Social Security from the independent ‘Trust Fund’ and put it into the general fund so Congress could spend and borrow interest free from it?
A: It was Lyndon Johnson and the democratically controlled House and Senate.
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: When was the retirement age raised?
A: Males under JFK, Women in 1956.
AND MY FAVORITE:
Q: Which Political Party decided to start giving annuity payments to immigrants who had not paid into the program?
A: That’s right! Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it!
Social Security Cards up until the 1980s expressly stated the number and card were not to be used for identification purposes.
Since nearly everyone in the United States now has a number, it became convenient to use it anyway and the NOT FOR IDENTIFICATION message was removed
Now, after violating the original contract (FICA), the Democrats and Republicans both turn around and tell you their isn’t enough money to pay the earned benefits as they have been using the surplus deposits to pay for other unearned benefit type programs (welfare). The Democrats are now trying to sell the story that Republicans want to take your Social Security away!
And the worst part about it is uninformed citizens believe it! If enough people receive this, maybe a seed of awareness will be planted and changes can evolve. Maybe not, though. Some Democrats are awfully sure of what isn’t so — but it’s worth a try.
Politicians have purposely named benefit and entitlement programs very similar to confuse people about what the government is spending and to loop some gullible taxpaying voters into supporting their unfunded and unconstitutional welfare programs.
Social Security still is Based on work history and payroll payments into the SSA trust fund.
Title II - employee payroll deductions
Retirement - draw after date determined by birthday
Social Security Disability Insurance (SSDI)
[after 5 months]
Survivors and Dependents Insurance
Title XVIII - employee payroll deductions
Medicare [24 months after Title II begins, usually pays 80% of care, has deductible, copayment, no prescriptions]
Welfare Based only on financial eligibility (unfunded and unearned benefit from Tax dollars and diverted SSA trust funds. )
Title XVI - GOVERNMENT HANDOUT
Supplementary Security Income (SSI)
Title XIX - GOVERNMENT HANDOUT
Medicaid (immediate, usually covers 100% of care)
Medicaid provides a broad level of health insurance coverage, including doctor visits, hospital expenses, nursing home care, home health care, and the like. Medicaid also covers long-term care costs, both in a nursing home and at-home care. Medicare does not provide this coverage.
Prescription drugs are not covered by Medicaid. But if you’re eligible for Medicaid, the program usually pays the premium for Medicare Part D, the Medicare prescription drug plan, as most states include prescription drug coverage
Isn’t it sad that people who pay into social security and FICA most of their lives get less benefits from the government than those getting unearned handouts?
If the social security program is going to be terminated or payments substantially reduced all individuals who have been forced to pay into this program should receive a lump sum untaxed refund for the total amount contributed with an option to open retirement accounts with the funds!
Actions speak louder than bumper stickers.
You’ve already mentioned this, unfortunately the system doesn’t work for many Americans, bringing it back to what it was originally supposed to be would definitely help but at this point it’s be more beneficial to retirees to switch to a NIT and it would be easier for the government to implement