24 votes

Social Security Now Called 'Federal Benefit Payment Entitlement"

I'm only 48 so I don't receive SS but an older friend of mine just emailed me this:

Have you noticed, your Social Security check is now referred to as a "federal benefit payment"?

Our Government gets away with way too much in all areas of our lives, while they live lavishly on their grossly overpaid incomes!

Remember, not only have we contributed to Social Security but your employer did too. It totaled 15% of your income before taxes. If you averaged only $30K over your working life, that's close to $220,500.

If you calculate the future value of $4,500 per year (yours & your employer's contribution) at a simple 5% (less than what the government pays on the money that it borrows), after 49 years of working you'd have $892,919.98.

If you took out only 3% per year, you'd receive $26,787.60 per year and it would last better than 30 years (until you're 95 if you retire at age 65) and that's with no interest paid on that final amount on deposit! If you bought an annuity and it paid 4% per year, you'd have a lifetime income of $2,976.40 per month.

Entitlement my butt, I paid cash for my social security insurance!!!! Just because they borrowed the money, doesn't make my benefits some kind of charity or handout!!

Congressional benefits ---- free healthcare, outrageous retirement packages, 67 paid holidays, three weeks paid vacation, unlimited paid sick days, now that's welfare, and they have the nerve to call my social security retirement entitlements? We're "broke" and can't help our own Seniors, Veterans, Orphans, and Homeless.

In the last months we have provided aid to Haiti, Chile, and Turkey. And now Pakistan ....... hideout of bin Laden. Literally, BILLIONS of DOLLARS!!!

Our retired seniors living on a 'fixed income' receive no aid nor do they get any breaks while our government and religious organizations pour Hundreds of Billions of $$$$$$'s and Tons of Food to Foreign Countries!

They call Social Security and Medicare an entitlement even though most of us have been paying for it all our working lives and now when it’s time for us to collect, the government is running out of money. Why did the government borrow from it in the first place? Imagine if the *GOVERNMENT* gave 'US' the same support they give to other countries.

Sad isn't it?



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

If Social Security isn't

If Social Security isn't welfare, then neither is unemployment benefits. For both programs you pay a mandatory tax and then get the benefit when you meet the conditions of eligibility. Truth is, they are both welfare-- the government taxes you, and then gives out the money to other people.

helvering v. davis

social security is a tax. period.
they didn't borrow anything, they spent the taxes.
they don't owe you anything.

"The two weakest arguments for any issue on the House floor are moral and constitutional"
Ron Paul

"Federal Old-Age Benefits." - in name. "Income Tax" by law.

Accounts set up empty. But no appropriation deposited. Tax payments went to general fund. It's gone. "Legal Tenderer."

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Sir? There is more Sir. 1% incomr tax, please! - Young Paperboy.

Court opinions for Helvering v. Davis:

  • Helvering, COMMISSIONER OF INTERNAL REVENUE, ET AL. v. Davis, 301 US 619 - 1937 - Supreme Court - Cited by 2927
  • Helvering v. Davis, 114 F. 2d 1019 - 1940 - Circuit Court of Appeals
    For an unrecorded reason, this petition for review dismissed on motion of petitioner.

[Note to MT: Sit down on law library steps. Take off walking shoes. Put on fishing boots. Prepare to wade into the law library basement legal muck.]

301 U.S. 619 (1937)
HELVERING, COMMISSIONER OF INTERNAL REVENUE, ET AL. v. DAVIS. No. 910.

Supreme Court of United States.
Argued May 5, 1937. Decided May 24, 1937.
CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE FIRST CIRCUIT. 620
Mr. Edward F. McClennen, with whom Mr. Jacob J. Kaplan was on the brief, for respondent.

634 MR. JUSTICE CARDOZO delivered the opinion of the Court.
The Social Security Act (Act of August 14, 1935, c. 531, 49 Stat. 620, 42 U.S.C., c. 7, (Supp.)) is challenged once again.

In Steward Machine Co. v. Davis, decided this day, ante, p. 548, we have upheld the validity of Title IX of the act, imposing an excise upon employers of eight or more. In this case Titles VIII and II are the subject of attack. Title VIII lays another excise upon employers in addition to the one imposed by Title IX (though with different exemptions). It lays a special income tax upon employees to be deducted from their wages and paid by the employers. Title II provides for the payment of Old Age Benefits, and supplies the motive and occasion, in the view of the assailants of the statute, for 635*635 the levy of the taxes imposed by Title VIII. The plan of the two titles will now be summarized more fully.

Title VIII, as we have said, lays two different types of tax, an "income tax on employees," and "an excise tax on employers." The income tax on employees is measured by wages paid during the calendar year. § 801. The excise tax on the employer is to be paid "with respect to having individuals in his employ," and, like the tax on employees, is measured by wages. § 804. Neither tax is applicable to certain types of employment, such as agricultural labor, domestic service, service for the national or state governments, and service performed by persons who have attained the age of 65 years. § 811 (b). The two taxes are at the same rate. §§ 801, 804. For the years 1937 to 1939, inclusive, the rate for each tax is fixed at one per cent. Thereafter the rate increases 1/2 of 1 per cent every three years, until after December 31, 1948, the rate for each tax reaches 3 per cent. Ibid. In the computation of wages all remuneration is to be included except so much as is in excess of $3,000 during the calendar year affected. § 811 (a). The income tax on employees is to be collected by the employer, who is to deduct the amount from the wages "as and when paid." § 802 (a). He is indemnified against claims and demands of any person by reason of such payment. Ibid. The proceeds of both taxes are to be paid into the Treasury like internal-revenue taxes generally, and are not earmarked in any way. § 807 (a). There are penalties for non-payment. § 807 (c).

Title II has the caption "Federal Old-Age Benefits." The benefits are of two types, first, monthly pensions, and second, lump sum payments, the payments of the second class being relatively few and unimportant.

The first section of this title creates an account in the United States Treasury to be known as the "Old-Age 636*636 Reserve Account." § 201. No present appropriation, however, is made to that account. All that the statute does is to authorize appropriations annually thereafter, beginning with the fiscal year which ends June 30, 1937. How large they shall be is not known in advance. The "amount sufficient as an annual premium" to provide for the required payments is "to be determined on a reserve basis in accordance with accepted actuarial principles, and based upon such tables of mortality as the Secretary of the Treasury shall from time to time adopt, and upon an interest rate of 3 per centum per annum compounded annually." § 201 (a). Not a dollar goes into the Account by force of the challenged act alone, unaided by acts to follow.

[Editor note: Voluntary... But there are penalties for non-payment.]

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

thank you Mr. Twain

no real reform can occur until we properly identify the problem.
we may also gain a little insight as to why republicans seem content to let obamacare continue. the similarities between the two court decisions is key.

regards ;)

"The two weakest arguments for any issue on the House floor are moral and constitutional"
Ron Paul

You are reasoning through these tax mysteries quite well.

Your insight & deductions are solid on point. Observed similarities between these court arguments & legislation today are striking a rich vein. A nerve. Expect that most will have no clue about this history. Those that do, yet seem to enjoy the benefits, are perhaps hoping they will get theirs before... Well enough said.

In arguments with those creating "legal tender," they cloak any hint of knowing they are frauds. They roll their eyes on any suggestion that a hard working man ought to keep what he earned by his labor.

Rather than disappearing sound money, coin by coin, I respectfully encourage folks to increase their work for sound money. Dr Ron Paul & I both will be delighted to see income tax disappear... and nothing replace it. Dust to dust.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Come back Mr. Twain!

Glance askance, ten-cent tan stamps don't show pants!

Defeat the panda-industrial complex

I am dusk icon. anagram me.

Little Known Fact ...

... when Social Security was passed in 1935, it was challenged as unconstitutional.

The reasoning was that Congress did not have constitutional authority to implement a retirement program for the masses.

So, Franklin Roosevelt's administration argued in the courts that it was NOT a retirement program; that it was in fact a welfare scheme and pay-as-you go. He claimed this so that it would not be declared unconstitutional as a retirement scheme.

All the while his lawyers were arguing that it was NOT a retirement program in the courts, FDR was on radio singing the praises to the public of this new RETIREMENT program for the masses.

And you wondered where Barry got the idea to call the healthcare legislation a tax in the courts while he was saying it was not a tax in public ...

.

they did the same thing with obamacare. first they argued it was a mandate and not a tax so it did not have to go back to the house for reconciliation.,
then when it got infront of the scotus the admin said it was infact a TAX and is legal and roberts agreed it was a tax..
the congress did not pass this as a tax, they passed it as a mandate, and barely.. the house if it went back to the house would have never passed a tax so harry called it a mandate and sent it right over to obamas desk and a mandate does not have to go back to the house for reconciliation, but a tax does...
they flipped it from mandate to tax midstream and wiggled their way through the system. but it is unconstitutional as well under the same premise.

"OH NO! He has a SON?" Neoconservatives and Liberals EVERYWHERE!

Rand Paul 2016

"Ready or not, here I come" - Start of 'Hide n Seek

"Retire or tax, here I come" - Age of Empires

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Well

Ponzi schemes rarely end well.

_________________________________

Freedom - Peace - Prosperity

And by rarely

I mean never.

_________________________________

Freedom - Peace - Prosperity

Social Security renamed

Social Security renamed Federal Benefit Payment Entitlement

Interesting sequence going on:

So, there's a thing called government in someone's life years ago that took -- didn't ask but took, stole -- some of his property known as income from his paycheck (not a payment, but the validator/monitor of payment, again the paycheck, something plugged into the government) and right when he and other people such as him who abide the government's rule that when the person turns a certain age that the government returns his property, the government in the form of the agency that stole from those people changes the name of the program through which it stole.

Name changes can be harmless. Sometimes their changes are for accuracy, where the process the name/term/short version defines corresponds to the name/term/short version. This change isn't good or bad. What determines the nature of the change -- good or bad -- is what is with this change.

I think accuracy is the case here, but -- BUT -- when the subject is government, the centrality whose operation always has been coercion, I think this name change isn't for clarity only and likely is going to produce what coercion produces, harm.

Since SS's inception, even though it stole property from the individual, always it was understood that property would be returned, a cyclical relationship. But this name change. Hmmm. Federal Benefit Payment Entitlement.

So, "entitlement" conveys returning -- paid in, paid back. OK. Good. But somehow, some way, I wonder if this name change consists of means testing, testing the individual must do retrieve what was stolen from him. If so, this change removes the individual from serf from the government's perspective, where the government moved him into its sphere and below it "one notch," to a new location, where the individual is at least "two notches" below the government, now a groveler, a beggar, a pleader, a guilty-until-proven-innocent, a person whose interaction to it isn't achievement of time but is passing of demands, a slave. And all the while, the achievement, now demands passing, is to retrieve what was and is his. Stunning.

That process, my friends, is extortion.

School's fine. Just don't let it get in the way of thinking. -Me

Study nature, not books. -Walton Forest Dutton, MD, in his 1916 book whose subject is origin (therefore what all healing methods involve and count on), simple and powerful.

What? Me Worry? - Alfred E. Neman

Money Supply - Chart cutesy of Saint Louis Fed

What? Me Worry? - Alfred E. Neuman - cutesy of MAD Magazine. Who Was Bill Gaines?

Nickelodeon - Push down a picture of omnipresent mascot Alfred E. Neuman, and up would pop “No Sale.”

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

"It is so much fun to spend other people's money!" - Government

[Washington DC: Phones Ring in massive maze of cubicles]
Federal Insurance Contribution Act (FICA) Tax Collector: Hello. Social Security Administration. May I help you?

go213mph: [You now] call Social Security and Medicare an entitlement even though most of us have been paying for it all our working lives... and now when it’s time for us to collect...

FICA Tax Collector: "go213mph? I'm sorry, I see no record of your payments. Perhaps you have a wrong number?

go213mph: "Entitlement my [redacted], I paid cash for my social security insurance!!!! ..."

FICA Tax Collector: You want Social Security Insurance? I'm sorry, due to running out of funds, they no longer exist. Would you like me to connect you to the new "Federal Benefit Payment Entitlement"?

go213mph: Entitlement my [redacted]! I paid cash...

FICA Tax Collector: One moment please...

go213mph: [Dial tone...]

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

.

but SS is an entitlement. even though we paid year after year, the gvt stole the money and spent it on.. wait for it.. bigger gvt!!!.
in reality the SS payments come out of out general budget and the workers of today pay for todays user of SS, medicade and medicare.
there is no SS fund, its gone.

the money was stolen and spent.
the children of today should not have to pay for people whos money was stolen from them by gvt.
it is immoral for anyone to ask todays kids to pay 30% income tax because the money was stolen and spent. get it from the fed or the politicians- the ones who spent it... but not the working class.

"OH NO! He has a SON?" Neoconservatives and Liberals EVERYWHERE!

Rand Paul 2016

Why compound it with 5% anually

The lowest rate of interest during those years was a CD. It was for those whom wanted no risk. The average during those years was 6%

http://www.forecast-chart.com/interest-cd-interest.html And use a compound yearly interest rate calculator http://www.moneychimp.com/calculator/compound_interest_calcu... It's not rocket science. It's good old NORMAL business.

It's a Ponzi scheme, and an involuntary one at that.

One of the few times Rick Perry was right.

He Was Also Right About The Need To Cut Departments

He just couldn't remember which ones.

___________________________________________________________________________
"Bipartisan: both parties acting in concert to put both of their hands in your pocket."-Rothbard

I just read your post

Is it any wonder why the government is stocking up on ammo?

I did the math a little different...

I took my entire government deductions, totalled them up, and extended them out at the same rate I've gotten on my retirement over the last 5 years (about the worst period since I enrolled, btw). Using $500k as a retirement amount, I figured out how many years before one could retire on an average salary.

It came to 14 years to top half a mil in retirement. While, yes this isn't enough to retire on at age 32, it wasn't taking into account for raises in investment (due to income raises) either.

How many more jobs would there be if the population averaged retiring after 20 years instead of 40?

I hear what you are saying

I hear what you are saying but..... I think your numbers are a little off. From what I can find, we`ve never paid 15% SS tax combined employee/employer.
http://www.ssa.gov/oact/progdata/oasdiRates.html
Maybe you were adding in medicare too? Also just wondering, where would this 5% interest you write about come from?

Yup. It is around 12.5% for

Yup. It is around 12.5% for SS.

Government pays a maximum of 5% a year. Not always 5%. If it is more, the government keeps it. If it is less, too bad for you!

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

Just Get Rid Of Social Security

The longer it is in place, the more people will get hurt by it.

My Parents included me in an email chain with that exact wording

My response:

The gov't may have sold it to the masses as a retirement fund based off of earned income, but it was always managed as a defined benefit program... of which there never was any money being stockpiled to pay out benefits from upon retirement. The gov't is incapable of leaving any stream of revenue unspent.

Since the number of boomers is so high and the benefits have been plundered by our treasonous gov't, there aren't enough workers to be taxed to pay for the current boomers' retirements. Enter "our" wonderful Federal Reserve to inflate the money supply in order to maintain perception that benefits are being paid out, though in reality the value of your benefit declines.

The fear is being on a fixed income when we have a gov't and central bank who have gone completely out of control with our money supply.

Romney & Obama both have full support of the banks, so I wouldn't vote for them.

Oh... and i replied all

That should have raise some eyebrows of the boomer GOP faithful.

reedr3v's picture

LOL, the propaganda machine works full time

.

Money is going to run out for

Money is going to run out for SS. What will happen then? That might just be what it takes to get people to see they have fucked everyone over because of what they believed.

To climb the mountain, you must believe you can.

What? Me Worry?

Money Supply - Chart courtesy of Saint Louis Fed

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul