Social Security Chain Email Circulating And A Response

[Syrinx]

I've recently received an email chain from three different sources. Probably, a lot of you have as well. Well, the federal government actually has excellent debunking information on the SSA website.

I'll post the links to the debunking info, followed by one of the emails I received. If you get one of the emails, please follow up (using "Reply To All" if you feel so inclined).

http://www.ssa.gov/history/InternetMyths.html

http://www.ssa.gov/history/InternetMyths2.html

We contend that for a nation to try to tax itself into prosperity is like a
man standing in a bucket and trying to lift himself up by the handle .--
Winston Churchill SOCIAL SECURITY:

Franklin Roosevelt, a Democrat, introduced the Social Security (FICA)
Program.

He promised:
1.) That participation in the Program would be completely voluntary,

2.) That the participants would only have to pay 1% of the first $1,400 of their annual incomes into the Program,

3.) That the money the participants elected to put into the Program would be deductible from their income for tax purposes each year,

4.) That the money the participants put into the 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 and,
5.) That the annuity payments to the retirees would never be taxed as income.

Since many of us have paid into FICA for years and are now receiving a
Social Security check every month -- and then finding that we are getting taxed on 85% of the money we paid to the Federal government to "put away," you may be interested in the following:

Q: Which Political Party took Social Security from the independent "Trust" fund and put it into the General fund so that Congress could spend 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 U.S.

Q: Which Political Party decided to start giving annuity payments to
immigrants?

MY FAVORITE : A: That's right! Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive SSI Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it! Then, after doing all this thieving and violation of the original contract (FICA), the Democrats turn around and tell you that the 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 maybe good changes will evolve.

How many people can YOU send this to?

Politics is supposed to be the second oldest profession. I have come to realize that it bears a very close resemblance to the first!

[Dogmudgeon]

1. Check Snopes.com first

They have a large archive of this kind of political nonsense, in which they point out and refute each lie, distortion, and dumb-ass claim.

There are a few for chain letters from liberal writers -- a very few -- and a large number of such letters from conservatives.

--p!

[Syrinx]

2. thanks for the advice (which is good advice)

I did that first. I couldn't find it on Snopes, but a little googling led me to the links at the Social Security Administration.

[skids]

3. Well, I haven't received it...

...but then, everyone I know would know better.

If I did, I think my "rebuttal" would be simply "yeah, I read it, and if it were in hardcopy, I wouldn't even stoop to wipe my ass with it."

[DemBones DemBones]

4. I have seen it before and

really thought I'd seen it at Snopes.com but can't find it there. A couple of other topics that might help you (like "Mexican Standoff") turned up when I searched their site for "Social Security."

You should send this piece of garbage, and your reponse, to Snopes so they can have it on file in the future.

If right-wingers didn't lie, they'd have very little to say.

[Syrinx]

5. that's a good idea

I think I will send it to snopes. Thanks for suggesting it.

[bananas]

7. I did some googling and found this link at snopes

you could ask them about it.
You'll have to cut and paste the link.
 http://www.snopes.com/cgi-bin/news/ultimatebb.cgi?ubb=get_topic;f=3;t=000003

[NewJeffCT]

6. please copy the response, then link it

many people might be too lazy to hit the link, so posting the text of the SSA's response is helpful.

[Syrinx]

9. okay, here is.

http://www.ssa.gov/history/InternetMyths.html

MYTHS AND MISINFORMATION ABOUT SOCIAL SECURITY

Myths and misstatements of fact frequently circulate on the Internet,
in email and on websites, and are repeated in endless loops of
misinformation. One common set of such misinformation involves the
history of the Social Security system.

One Common Form of the Myths:

"Franklin Roosevelt introduced the Social Security (FICA) program. He
promised:

1) That participation in the program would be completely voluntary;
2) That the participants would only have to pay 1% of the first $1,400
of their annual incomes into the program; 3) That the money the
participants elected to put into the program would be deductible from
their income for tax purposes each year; 4) That the money the
participants paid in would be put into the 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.; 5) That the annuity payments to the retirees would
never be taxed as income."

CORRECTING THE MYTHS AND MISSTATEMENTS

Myth 1: President Roosevelt promised that participation in the program
would be completely voluntary

Persons working in employment covered by Social Security are subject to
the FICA payroll tax. Like all taxes, this has never been voluntary.
From the first days of the program to the present, anyone working on a
job covered by Social Security has been obligated to pay their payroll
taxes.

In the early years of the program, however, only about half the jobs in
the economy were covered by Social Security. Thus one could work in non-
covered employment and not have to pay FICA taxes (and of course, one
would not be eligible to collect a future Social Security benefit). In
that indirect sense, participation in Social Security was voluntary.
However, if a job was covered, or became covered by subsequent law,
then if a person worked at that job, participation in Social Security
was mandatory.

There have only been a handful of exceptions to this rule, generally
involving persons working for state/local governments. Under certain
conditions, employees of state/local governments have been able to
voluntarily choose to have their employment covered or not covered.
(The detailed history of the coverage rules can be found elsewhere on
our website.)

Myth 2: President Roosevelt promised that the participants would only
have to pay 1% of the first $1,400 of their annual incomes into the
program

The tax rate in the original 1935 law was 1% each on the employer and
the employee, on the first $3,000 of earnings. This rate was increased
on a regular schedule in four steps so that by 1949 the rate would be
3% each on the first $3,000. The figure was never $,1400, and the rate
was never fixed for all time at 1%.

(The text of the 1935 law and the tax rate schedule can be found
elsewhere on our website.)

Myth 3: President Roosevelt promised that the money the participants
elected to put into the program would be deductible from their income
for tax purposes each year

There was never any provision of law making the Social Security taxes
paid by employees deductible for income tax purposes. In fact, the 1935
law expressly forbid this idea, in Section 803 of Title VIII.

(The text of Title VIII. can be found elsewhere on our website.)


Myth 4: President Roosevelt promised that the money the participants
paid would be put into the 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

The idea here is basically correct. However, this statement is usually
joined to a second statement to the effect that this principle was
violated by subsequent Administrations. However, there has never been
any change in the way the Social Security program is financed or the
way that Social Security payroll taxes are used by the federal
government.

The Social Security Trust Fund was created in 1939 as part of the
Amendments enacted in that year. From its inception, the Trust Fund has
always worked the same way. The Social Security Trust Fund has never
been "put into the general fund of the government." (For a detailed
explanation of how the Trust Fund works, provided by the Social
Security Administration's actuaries, see the material available
elsewhere on our website.)

Most likely this myth comes from a confusion between the financing of
the Social Security program and the way the Social Security Trust Fund
is treated in federal budget accounting. Starting in 1969 (due to
action by the Johnson Administration in 1968) the transactions to the
Trust Fund were included in what is known as the "unified budget." This
means that every function of the federal government is included in a
single budget. This is sometimes described by saying that the Social
Security Trust Funds are "on-budget." This budget treatment of the
Social Security Trust Fund continued until 1990 when the Trust Funds
were again taken "off-budget." This means only that they are shown as a
separate account in the federal budget. But whether the Trust Funds are
"on-budget" or "off-budget" is primarily a question of accounting
practices--it has no affect on the actual operations of the Trust Fund
itself. (The budget treatment of the Trust Funds is explained in more
detail elsewhere on our website.)


Myth 5: President Roosevelt promised that the annuity payments to the
retirees would never be taxed as income

Originally, Social Security benefits were not taxable income. This was
not, however, a provision of the law, nor anything that President
Roosevelt did or could have "promised." It was the result of a series
of administrative rulings issued by the Treasury Department in the
early years of the program. (The Treasury rulings can be found
elsewhere on our website.)

In 1983 Congress changed the law by specifically authorizing the
taxation of Social Security benefits. This was part of the 1983
Amendments, and this law overrode the earlier administrative rulings
from the Treasury Department. (A detailed explanation of the 1983
Amendments can be found elsewhere on our website.)

http://www.ssa.gov/history/InternetMyths2.html

MYTHS AND MISINFORMATION ABOUT SOCIAL SECURITY- Part 2

Myths and misstatements of fact frequently circulate on the Internet,
in email and on websites, and are repeated in endless loops of
misinformation. One common set of such misinformation involves a series
of questions about the history of the Social Security system.

One Common Form of the Questions:

Q1: Which political party took Social Security from the independent
trust fund and put it into the general fund so that Congress could
spend it?

Q2: Which political party eliminated the income tax deduction for
Social Security (FICA) withholding?

Q3: Which political party started taxing Social Security annuities?

Q4: Which political party increased the taxes on Social Security
annuities?

Q5: Which political party decided to start giving annuity payments to
immigrants?

THE CORRECT ANSWERS TO THE FIVE QUESTIONS

Q1. Which political party took Social Security from the independent
trust fund and put it into the general fund so that Congress could
spend it?

A1: There has never been any change in the way the Social Security
program is financed or the way that Social Security payroll taxes are
used by the federal government. The Social Security Trust Fund was
created in 1939 as part of the Amendments enacted in that year. From
its inception, the Trust Fund has always worked the same way. The
Social Security Trust Fund has never been "put into the general fund of
the government."

(For a detailed explanation of how the Trust Fund works, provided by
the Social Security Administration's actuaries, see the material
available elsewhere on our website.)

Most likely this question comes from a confusion between the financing
of the Social Security program and the way the Social Security Trust
Fund is treated in federal budget accounting. Starting in 1969 (due to
action by the Johnson Administration in 1968) the transactions to the
Trust Fund were included in what is known as the "unified budget." This
means that every function of the federal government is included in a
single budget. This is sometimes described by saying that the Social
Security Trust Funds are "on-budget." This budget treatment of the
Social Security Trust Fund continued until 1990 when the Trust Funds
were again taken "off-budget." This means only that they are shown as a
separate account in the federal budget. But whether the Trust Funds are
"on-budget" or "off-budget" is primarily a question of accounting
practices--it has no affect on the actual operations of the Trust Fund
itself. (The budget treatment of the Trust Funds is explained in more
detail elsewhere on our website.)



Q2: Which political party eliminated the income tax deduction for
Social Security (FICA) withholding?

A2: There was never any provision of law making the Social Security
taxes paid by employees deductible for income tax purposes. In fact,
the 1935 law expressly forbid this idea, in Section 803 of Title VIII.

(The text of Title VIII. can be found elsewhere on our website.)



Q3. Which political party started taxing Social Security annuities?

A3. The taxation of Social Security began in 1984 following passage of
a set of Amendments in 1983, which were signed into law by President
Reagan in April 1983. These amendments passed the Congress in 1983 on
an overwhelmingly bi-partisan vote.

The basic rule put in place was that up to 50% of Social Security
benefits could be added to taxable income, if the taxpayer's total
income exceeded certain thresholds.

The taxation of benefits was a proposal which came from the Greenspan
Commission appointed by President Reagan and chaired by Alan Greenspan,
who is presently serving as Chairman of the Federal Reserve.

The full text of the Greenspan Commission report is available on our
website.

President's Reagan's signing statement for the 1983 Amendments can also
be found on our website.

A detailed explanation of the provisions of the 1983 law is also
available on the website.



Q4. Which political party increased the taxes on Social Security
annuities?

A4. In 1993, legislation was enacted which had the effect of increasing
the tax put in place under the 1983 law. It raised from 50% to 85% the
portion of Social Security benefits subject to taxation; but the
increased percentage only applied to "higher income" beneficiaries.
Beneficiaries of modest incomes might still be subject to the 50% rate,
or to no taxation at all, depending on their overall taxable income.

The details of these provisions can be found on our website.

This change in the tax rate was one provision in a massive Omnibus
Budget Reconciliation Act (OBRA) passed that year. The OBRA 1993
legislation was deadlocked in the Senate on a tie vote of 50-50 and
Vice President Al Gore cast the deciding vote in favor of passage.

(You can find a brief historical summary of the development of taxation
of Social Security benefits on the Social Security website.)



Q5. Which political party decided to start giving annuity payments to
immigrants?

A5. Neither immigrants nor anyone else is able to collect Social
Security benefits without someone paying Social Security payroll taxes
into the system. The conditions under which Social Security benefits
are payable, and to whom, can be found in the pamphlets available on
our website.

The question confuses the Supplemental Security Income (SSI) program
with Social Security. SSI is a federal welfare program and no
contributions, from immigrants or citizens or anyone else, is required
for eligibility. Under certain conditions, immigrants can qualify for
SSI benefits. The SSI program was an initiative of the Nixon
Administration and was signed into law by President Nixon on October
30, 1972.

An explanation of the basics of Social Security, and the distinction
between Social Security and SSI, can be found on the Social Security
website.

[thecrow]

8. My fundie RW brother sent this to me last year

and I referred him to the two links at SSA, but I printed it out in the email so he'd be sure to at least have something to read.
I haven't heard back from him on this yet :)

He also sent me an email with excerpts of speeches by Democrats, trying to prove how they were on the rethug's side.... what a joke!
It took a little research but I debunked all of the references, too.

We now have an agreement not to send anything remotely political.
We are at odds on everything political, but we are, after all, siblings in the same family. (Although I do wonder where I was adopted from sometimes:)