Tuesday, May 27, 2008

Social Security Inconvenient Truths

When Social Security (FICA) was introduced it was promised:

* Participation in the program would be completely 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.

* The money the participants put into the independent trust fund rather than into the general operating fund, would be used only to fund Social Security, and no other government program.

* Payments to the retirees would never be taxed as income.

The millions who have paid into FICA for years and are now receiving a Social Security check every month -- and who then find they are getting taxed on 85% of the money they gave to the federal government to save for them -- may be interested in the following:

* Social Security money has been removed from the trust fund and put it into the general fund so that Congress could spend it.

* The income tax deduction for Social Securitjavascript:void(0)
Save Nowy withholding has been eliminated.

* Social Security annuities are now taxed.

Now contrast this with the fact that Congress passed a 100% retirement benefit for members who have served at least one term.



"The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to a close. In its place, we are entering a period of consequences." - Winston Churchill, The Gathering Storm

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