The History of “Republicans” Destroying our Social Security!

Another election year–another round of candidates talking about how they are going to “fix” social security.  Once again, we hear from Obama and his party that the Republicans are at fault for the various ills plaguing our beloved retirement plan.  (I got my statement recently and it shows that I’ll make just enough to pay my current house note when I’m 70–I can’t wait to roll in that dough)

A friend of mine sent me an email that details the history of social security.  I checked out the facts and decided that it would be beneficial for you to know the truth about what has happened to this system.  Let’s step into our time machine and take a look back at the history of this amazingly inefficient government agency and program:  (imagine dream sequence animation here)

 

1935:  DEMOCRAT President Franklin D. Roosevelt signs the Social Security Act into law.  President Roosevelt first promised that the system would be voluntary.  Of course, assuming that the American public would not do what HE knew was best for them, it was passed as a payroll tax and later made part of the IRS code.  Originally, participants would only have to pay 1% of the first $1400 they made.  The money would be deductible from income taxes.  The money was to be placed into a special trust fund so that it would never become part of the General Budget and the annuity payments to retirees was not supposed to be taxed.  Sounds good–and even sounds like it would not be too onerous of a system to implement and receive.  It is a system of “forced” savings–but small enough not to overburden the government or our society.

THEN things changed.  Long gone are the days where the public championed this sytem.  Like Ida Mae Fuller–the first recipient of a death benefit under the system in 1939.

Ida May Fuller, the first recipient

In 1956, a democratically controlled congress raised the tax rate from 1% to 2% (2 for employer as well) and almost all other trades were included in the range of people that could receive benefits.

Then, in 1965, Lyndon Johnson, a DEMOCRAT President, added Medicare to the the program and moved the funds from the Trust Fund and placed them in the General Budget under the “theory” that Congress would be able to add more money to the fund instead of spend it.  HA HA HA HA HA HA

During the Carter administration (another DEMOCRAT)-we had the worst inflation and unemployment since the Great Depression–the result was a tremendous budget problem in Congress–which continued to pull money from the general fund to pay for social programs–Social Security, for all intensive purposes was raided out of existence and now is simply a line item in the Budget–but there is no “fund.”

Then Al Gore cast the tie-breaking vote in the Senate to start taxing Social Security annuities for the first time.  Since that vote-no one has done anything to fix the program or allow workers to chose between the program and private choice investment.

Obama though has an idea for “change”–he proposes removing the cap for social security wages–so that you have to pay on all of your income and increasing taxes on those who make over $250,000.  Wow–what a novel idea–Since the 1930’s the only real “change” to Social Security other than moving it into the General Budget–is numerous tax increases to pay for it.

Does that sound like change to you?

“A government big enough to give you everything you want, is strong enough to take everything you have.”  Thomas Jefferson–3rd President–and a Democrat

-Murphy

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2 Comments on “The History of “Republicans” Destroying our Social Security!”

  1. kristiane Says:

    Hmmm, I am screwed then, right? Maybe I can be one of those 75 year old senile ladies trying to bag up burgers at McDonalds, yet never getting the orders right:)

  2. mklasing Says:

    Kris: Oh you are totally screwed–as am I. And you are right–those ladies NEVER get the order right. My middle child is lactose intolerant–so she always wants a double cheesburger–without the cheese. I’m batting about a .250 average on the sandwich coming out without cheese through the window. And believe me–I say the order VERY SLOWLY–but it requires a little brain power.


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