For Us Older Folks

[chuckster]

Interesting facts
Subject: SOCIAL SECURITY


Q: Which party took Social Security from an
independent fund and put it in the general fund so
that Congress could spend it?

A: It was Lyndon Johnson and the Democratic-controlled
House and Senate.

Q: Which party put a tax on Social Security?

A: The Democratic party.

Q: Which party increased the tax on Social Security?

A: The Democratic Party with Al Gore casting the
deciding vote.

Q: Which party decided to give your Social Security
money to immigrants?

A: That's right, the Democratic Party. Immigrants that
move into this country at 65 get SSI and have never
paid a dime into the system. This is costing us
millions of dollars.

Then, after doing all this, the Democrats turn around
and tell you the Republicans want to take your Social
Security away from you. The worst part about it is
that people forget who did what!

What can you do? Circulate this to remind people so
they'll remember it.

 

[demsformd]

This is all better than Republicans voting against Social Security in the first place, voting to increase the retirement age, oppose a lockbox for the Social Security trust fund, and priviatize it so that today's seniors are left in the cold.

 

[vraiblonde]

Dems, quit getting your information from Martin Sheen. There are no plans, let me repeat that, NO PLANS to just up and ditch the current SS system in one fell swoop. What they're talking about is phasing it out so that seniors still get what's coming to them and people who are closer to retirement aren't left in the cold either.

 

[demsformd]

Originally posted by vraiblonde
Dems, quit getting your information from Martin Sheen. There are no plans, let me repeat that, NO PLANS to just up and ditch the current SS system in one fell swoop. What they're talking about is phasing it out so that seniors still get what's coming to them and people who are closer to retirement aren't left in the cold either.

Stop getting your utopian information from Newt and Rush.

 

[MGKrebs]

Questions

I think I found the site you got this from. Unfortunately, there are no links to back any of this up. So, I have some questions.

Q: Which party took Social Security from an independent fund and put
it in the general fund so that Congress could spend it?
A: It was Lyndon Johnson and the Democratic-controlled House and Senate.

Got anything to back this up? I can't find anything to verify this. it looks like parts of SS have come out of General Funds since the beginning, i.e. (from SS website):

1. General Revenue Financing Act _
1956 For cost of gratuitous military service wage credits.
1966 For cost of transitional uninsured benefits for those aged 72 and older, with fewer than 3 QC.
1972 For cost of gratuitous wage credits for U.S.-citizen internees of Japanese ancestry.
1983 For taxes which would have been collected on deemed post-1956 military service wage credits. Estimated cost for pre-1957 credits funded in advance.

Medicare Financing
Hospital Insurance Taxes
Appropriations from General Revenues
1965 For HI costs attributable to transitionally insured beneficiaries.
For HI costs attributable to noncontributory wage credits granted for military service prior to 1957 (see table 2.A2).
For the SMI program, an amount equal to participant premiums.
1972 For cost of SMI not met by enrollee premiums.
1982 For HI costs attributable to beneficiaries having transitional entitlement based on Medicarequalified federal employment.
1983 For HI taxes on noncontributory wage credits granted for military service (a) from the inception of HI program through 1983 and (b) on a current basis, annually, beginning in 1984 (see table 2.A2).
Participant Premiums. See also table 2.C1.
1965 SMI enrollee premium rate (originally $3 per month) to be established annually such as to pay one-half of program costs.

Q: Which party put a tax on Social Security?
A: The Democratic party.

I'm not certain when it was implemented, but the way I understand it, the taxes that apply to SS only kick in if you exceed certain income levels:

Retirement Earnings Test Exempt Amounts:
2002 2003
Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
$11,280/yr. $11,520/yr.
($940/mo.) ($960/mo.)

Year individual reaches full retirement age
NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.
$30,000/yr. $30,720/yr.
($2,500/mo.) ($2,560/mo.)

Is there a problem with this?

Q: Which party increased the tax on Social Security?
A: The Democratic Party with Al Gore casting the deciding vote.

Maybe so, but what are the details? To what is being referred to?

Q: Which party decided to give money to immigrants?
A: That's right, immigrants moved into this country and at 65 got SSI
Social Security. The Democratic Party gave that to them although they
never paid a dime into it.

I don't know if I agree with this (if it's true), but I think the problem is that some people view Social Security as a savings account- that you should get out what you paid in. That is not what SS is (yet). It is essentially an insurance policy, and you pay premiums. What you eventually get out of it has little to do with how much you paid in.

 

[Frank]

Re: Questions

Originally posted by MGKrebs
It is essentially an insurance policy, and you pay premiums. What you eventually get out of it has little to do with how much you paid in.

I can't imagine an insurance company that pays out to persons who have never paid premiums.

But please send me the names of those that do - I could use the money.

 

[MGKrebs]

FYI

http://www.socsec.org/facts/Issue_Briefs/myths.htm