By Daryl L. Hunter (1999)
Although I wrote this in 1999 the same problems exist but are worse now,
the numbers are higher but the dynamic remains the same.
It is a shame that our Social Security Trust Fund has had the United
States Congress as it's Trustee. It has been used, borrowed, misappropriated,
commingled and hijacked. A trust fund in the private sector managed
as this one would have the trustees in jail.
The 106 congress has claimed to have put the Social Security Trust
Fund in a Lock Box so the Trust Fund isn't any longer used as a Congressional
and Presidential slush fund. However apparently the Lock Box is rhetoric
over substance because the Fund remains part of the General Fund in
the The United States Treasury instead of in an interest bearing, or
investment account of it's own.
Before I go any farther I would
like to point out that the so called Social Security Surplus is not
a surplus, but a remnant of the American
Peoples equity in their grossly mismanaged collective retirement fund.
Not surplus discressionary spending funds for the politicians. The
term surplus alludes to the mistaken belief that they are not needed
where they were originally targeted for, the Social Security "Growth" Trust
Fund. So whenever you hear any politician talk of the Social Security
Surplus transpose the word surplus to equity so you will be
more aware of what you are being screwed out of.
Our Government continues to use the current and temporary Social Security
surplus to credit our National
Debt by commingling the Social Security Trust Fund with the General
Fund. This is smoke, and mirrors and our legislators Republican and
Democrat alike know this. Yet still they use this hocus pocus accounting
to push their own political agenda's.
The optimistically projected 10 year budget surplus of 3,000,000,000,000
(three trillion dollars) is bolstered by the so called Lock Box of
the Social Security Trust Fund that shouldn't be commingling inside
the General Fund in the first place. If you subtract the Social Security
Trust Fund surplus/equity (2 trillion Dollars) from the General Fund
surplus (3 trillion dollars) you find the real projected surplus of
1 trillion Dollars.
The Republicans want to refund
800 billion dollars of this "surplus" to
us taxpayers, you, me, and Wall Street, and use the remaining estimated
200 billion to pay down our National Debt of 5,600,000,000,000 (5.6
trillion Dollars). OK, Lets all spit in the ocean and see whether we
can raise the tides. If you don't live near an ocean, spit in your
nearest creek, the result will be the same. This irresponsible double
counting of commingled money renders the Republicans incompetent trustees
of the Social Security Trust Fund.
The Democrats are paying major lip service to paying off the National
Debt however their dedication to Lyndon Johnson's Great Society and
Franklin Rosevelts New Deal and all their socialist programs render
them incapable of fiscal responsibility, therefor incompetent trustees
of the Social Security Trust Fund.
Our respective parties rational (or should I say rationalization)
is that the 3 trillion dollar combination of the Social Security Trust
Fund surplus/equity and the General Fund surplus, credit our 5.6 trillion
national debt. A smoke and mirrors way supposedly reducing the debt
by 2 to 3 trillion dollars depending on the Party's plan.
As good as that sounds, the 2 trillion dollar surplus (the supposed
Lock Boxed Social Security Trust Fund) is earmarked to fund the Social
Security needs for the baby bust years when the baby boomers begin
drawing from the Social Security trust fund, rapidly turning the Social
Security Trust Fund Surplus/equity into the Social Security Deficit.
So that by whoever's plan you go by the General Fund benefits by accounting
tricks only, because when the baby boomers turn the Social Security
Trust Fund into a Deficit, the Social Security benefits will have come
out of the mismanaged, commingled General Fund compounding the problem
of the collectively ignored, abused, neglected and defrauded National
Debt.
# What Can We Do
#1We as American voters must do what we started in 1994. We had a
populist uprising at the ballot box that restored my faith in our American
System. We upset the status quo, and we need to do it again. Both parties
survive on pork barrel politics which all of us are guilty of supporting.
Consequently, we are all paying the price of our own selfish needs
by demanding our own piece of pork by supporting legislators from our
home districts that bring home said pork. We need to support legislators
that can stand on principal and vote for the collective good of this
great country.
Citizens For A Freer America supports
the campaign finance reform that will benefit the Democrats more
than Republicans although this
kicks us conservatives where it hurts (soft money) we must stand on
principal and help end soft money contributions, the source of "out
of district" pork barrel spending which is decimating the judgment
of our legislators of both parties. Unlimited campaign contributions
from Wall Street, Labor Unions, and China must STOP!
If the Pork Barrel Culture of our legislators can't be stopped Citizens
For A Freer America will have to start a term limit advocacy. However,
today we are not for term limits because it is senseless to discard
moral, conscientious, effective legislators due to a limit on time
brought on by legislators engaging in pork barrel spending, recklessly
endangering the Social Security Trust Fund the General Fund and the
trust of the American People.
#2 We must demand that the Social Security Trust Fund Remains separate
from the General fund in an account of it's own where the American
people can monitor it, and a board of trustees can hopefully make it
grow.
#3 Commingling is against the law in the private sector, and it should
be against the law for the government also. We should only count our
national assets once if we really want to know our nations bottom line.
We do want to know our bottom line don't we. For other ideas see our
Think Tank.
Please help support Citizens For a Freer America in our effort to
keep America financially safe by holding our legislators feet to the
fire.
Food For Thought
Your Social Security
Just in case some of you young people (& some older ones) didn't know this. It's easy to check out, if you don't believe it. Be sure and show it to your kids. They need a little history lesson on what's what. Our 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.
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Q: Which Political Party eliminated the income tax deduction for Social Security (FICA) withholding?
A: The Democratic Party.
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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 US
-------------------------------------------------------------------
Q: Which Political Party decided to start giving annuity payments to immigrants?
AND MY FAVORITE:
A: That's right! Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it!
----------------------------------------------------------------------
Then, after violating 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!
'Above All, Try Something'
What FDR really said about private Social Security accounts.
Exerpt from John Fund Wall Street Journal Article
Today's supporters of Social Security reform recognize Roosevelt's achievement and are merely hoping to update it using the miracle of compound interest and today's far more sophisticated private investment vehicles. Conservative commentators, including me, have suggested that Roosevelt himself recognized the importance of private-sector retirement plans. This has prompted a flurry of outraged attacks from liberals who accused us of lying about Roosevelt's record. They should calm down, as we look at the facts..................................................................But Roosevelt had indeed proposed a plan under which all workers would have been allowed to make periodic voluntary payments in exchange for certificates representing the amounts they had deposited. At 65, workers would have been able to trade in their certificates for annuities that paid up to $100 a month (the 1935 equivalent of some $1,300 today) based on their total deposits plus interest. In fact, Roosevelt expressly cited the need for private plans to become available as the worst of the Depression passed: "I am greatly hoping that repeated promises of private investment and private initiative to relieve the government in the immediate future of much of the burden it has assumed will be fulfilled."---------------------------------------------- More
Subject: History Lesson on Your Social Security Card
Just in case some of you didn't know this. It's easy to check out, if you don't believe it. Be sure and show it to your family and friends. They need a little history lesson on what's what and it doesn't matter whether you are Democrat or Republican. Facts are Facts.
Social Security Cards up until the 1980s expressly stated the number and card were not to be used for identification purposes. Since nearly everyone in the United States now has a number, it became convenient to use it anyway and the message, NOT FOR IDENTIFICATION, was removed.
An old Social Security card with the "NOT FOR IDENTIFICATION" message.
Our Social Security
Franklin Roosevelt, a Democrat, introduced the Social
Security (FICA) Program. He promised:
1.) That participation in the Program would be
Completely voluntary,
No longer Voluntary
2.) That the participants would only have to pay
1% of the first $1,400 of their annual
Incomes into the Program,
Now 7.65%
on the first $90,000
3.) That the money the participants elected to put
into the Program would be deductible from
their income for tax purposes each year,
No longer tax deductible
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
under Johnson the money was moved to
The General Fund and Spent
5.) That the annuity payments to the retirees would never be taxed as income.
Under Clinton & Gore
Up to 85% of your Social Security can be Taxed
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 US
Q: Which Political Party decided to start giving annuity payments to immigrants?
AND MY FAVORITE:
A: That's right!
Jimmy Carter and the Democratic Party.
Immigrants moved into this country, and at age 65,
began to receive Social Security payments! The
Democratic Party gave these payments to them,
even though they never paid a dime into it!
Then, after violating 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!
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