The Tax Foundation estimates that 41 percent of whites, 56 percent of blacks, 59 percent of American Indian and Aleut Eskimo and 40 percent Asian and Pacific Islanders had no 2004 federal income tax liability. The study concluded, “When all of the dependents of these income-producing households are counted, there are roughly 122 million Americans — 44 percent of the U.S. population — who are outside of the federal income tax system." These people represent a natural constituency for big-spending politicians. In other words, if you have little or no financial stake in America, what do you care about the cost of massive federal spending programs?
It all began during the Great Depression when approximately 15 million Americans were out of work ,and with no money for the basic necessities of life. In 1935, President Roosevelt started what is now the Welfare State of America, only if he could come back he would be shocked to to how far Left we have gone.
During the first few years of Social Security, eligible Americans received, on average, $58.06.
Before Franklin Roosevelt's administration, it was unusual for the government to give people money, and some Americans were against Social Security. My how things have slid to to the Left. More than 50% of US Americans depend on the Government for their "daily bread".
Prior to the New Deal, Congress, the Supreme Court, and leading constitutional lawyers had generally interpreted the Constitution in such a way that the principal responsibility for social welfare matters was left to the States. However, State governments proved to be extremely reluctant to undertake costly social welfare measures on anything less than a nationwide basis, for fear of imposing economic burdens on locally based industries that would put them at a competitive disadvantage in the national market, and get them thrown out of office. The result was a major political paradox--a built-in block against social welfare legislation by the States. The Federal Government was the only agency by which broad social welfare programs could be achieved.
Franklin Delano Roosevelt's original Social Security plan included provisions that would have allowed people to make personal investments — not much different from the private accounts that President Bush is currently proposing. In fact, this was one of three 'necessary principles' in FDR's legislative package presented to Congress on January 17, 1935:
FDR proposed that along with the funds each employee was required to contribute from his/her paycheck, workers could make periodic investments that would give them certificates redeemable for monthly payments upon their retirement. These certificates were referred to as 'annuity bonds,' and, much like Bush's private accounts, could be redeemed by the annuitant's spouse or beneficiaries upon his/her demise.
Unfortunately, this provision —— initially referred to as 'Title V' —— was deleted from the final bill that came out of Congress due to pressures exerted by the insurance industry.
Insurance lobbyists felt that this plan might cut into their industry's ability to sell such policies, as the government would suddenly become a direct competitor.
The initial monthly cap of the proposed annuity distribution was fixed at $100, this was intended to represent a very significant percentage of one's future benefits. The first monthly check distributed by Social Security was $22.54, or less than a quarter of what one could have received from an annuity bond.
President Roosevelt, a Democrat, promised:
1) That participation in the program would be completely voluntary.
2) That the participants would only have to pay 1 percent of the first $1,400 of their annual incomes into the Program. (During the Depression years most wage earners made around $10 to $20 a week.)
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 would be put into the independent “Trust Fund” rather than 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.
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 85 percent of the money we paid to the Federal Government to “put away” – you may be interested in the following:
Which political party took Social Security from the independent “Trust Fund” and put it into the General Fund so that Congress could spend it? It was Democrat President Lyndon and the Democrat controlled Congress House and Senate.
The Democrat party also eliminated the income tax deduction for Social Security (FICA) withholding.
The Democrat party also started taxing Social Security annuities, with Vice President Al Gore casting the “tie-breaking” deciding vote.
The Democrat party led by President Jimmy Carter also decided to start giving annuity payments to immigrants. Immigrants moved into America and, at age 65, began to receive Social Security payments.
Now the Democrat politicians running for public office are lying to Americans by saying the “Republicans want to take away your Social Security!”
For the record, the New Deal “entitlements” were all in violation of our nation’s Constitution.
Finally, after all of the Democrat maneuvering over the past 70 years, the Social Security Trust Fund is broke. There is no money in the Trust Fund. Instead, there is an IOU from the federal government in the amount of $1.7 trillion. This amount increases by over a Billion dollars each month!
The current SS tax rates are 10.4 percent for the wage owner and 6.14 for his/her employer. In 2007 the SS tax base was $97,500, with no maximum for the 1.45% tax for Medicare. Government officials and even AARP, have recommended increasing the taxable income base for Social Security to $140,00.
Presidential candidate Obama has the Chutzpah to tell the American people that if elected he will raise the taxes on Our income for Social Security!
Vote the tax and spend Princes and Princesses in Congress out of office in 2008!
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