I agree with the article that Social Security is welfare for the reasons stated below. This program should be ended or at the very least the process should be started to end it, along with all other welfare programs.
http://fff.org/explore-freedom/article/is-social-security-welfare/
Most Americans would never consider Social Security to be welfare because they think that they paid, or are paying, into the system their whole working lives and therefore earned, or are earning, their benefits and are just receiving, or will be receiving, their contributions back with interest.
Social Security is welfare because there is no connection between the taxes paid and the benefits received. Take two men who are the same age and have identical incomes. One works for exactly 35 years, reaches full retirement age, and then retires. The other works for 45 years, reaches full retirement age, and then retires. Since Social Security benefits are based on the average of a worker’s 35 highest years of earnings, as related above, the benefit amount that these two men receive every month will be substantially the same. The fact that each man paid vastly different amounts into the system yet received basically the same benefits is irrefutable proof that there is no connection between Social Security taxes and benefits.
Social Security is welfare because Congress may, at will, change the Social Security benefit schedule at any time. According to Title XI, section 1104 of the Social Security Act, “The right to alter, amend, or repeal any provision of this Act is hereby reserved to Congress.” That means that Social Security taxes can be changed at any time with no change in Social Security benefits; conversely, Social Security benefits can be changed at any time with no change in Social Security taxes. According to the Social Security Administration website,
Social Security should be considered welfare because it is not an investment with a rate of return. Roosevelt falsely promoted Social Security to Americans as a “savings account for the old age of the worker” with contributions made by employers and employees through payroll taxes “held by the government solely for the benefit of the worker in his old age.” The first beneficiary to receive a Social Security check was Ida May Fuller in 1940. After paying in just $24.75 in Social Security taxes, she went on to collect $22,888 in benefits. According to a 2002 Congressional Research Service report on “Social Security Reform,” workers who retired at full retirement age in 1980 got back all they paid into Social Security, with interest, in 2.8 years. On the other hand, someone can pay into the system his whole working life and, if he dies upon retirement without dependents, his “savings account” dies with him. Even George W. Bush recognized the nature of the system:
http://fff.org/explore-freedom/article/is-social-security-welfare/
Most Americans would never consider Social Security to be welfare because they think that they paid, or are paying, into the system their whole working lives and therefore earned, or are earning, their benefits and are just receiving, or will be receiving, their contributions back with interest.
Social Security is welfare because there is no connection between the taxes paid and the benefits received. Take two men who are the same age and have identical incomes. One works for exactly 35 years, reaches full retirement age, and then retires. The other works for 45 years, reaches full retirement age, and then retires. Since Social Security benefits are based on the average of a worker’s 35 highest years of earnings, as related above, the benefit amount that these two men receive every month will be substantially the same. The fact that each man paid vastly different amounts into the system yet received basically the same benefits is irrefutable proof that there is no connection between Social Security taxes and benefits.
Social Security is welfare because Congress may, at will, change the Social Security benefit schedule at any time. According to Title XI, section 1104 of the Social Security Act, “The right to alter, amend, or repeal any provision of this Act is hereby reserved to Congress.” That means that Social Security taxes can be changed at any time with no change in Social Security benefits; conversely, Social Security benefits can be changed at any time with no change in Social Security taxes. According to the Social Security Administration website,
Social Security should be considered welfare because it is not an investment with a rate of return. Roosevelt falsely promoted Social Security to Americans as a “savings account for the old age of the worker” with contributions made by employers and employees through payroll taxes “held by the government solely for the benefit of the worker in his old age.” The first beneficiary to receive a Social Security check was Ida May Fuller in 1940. After paying in just $24.75 in Social Security taxes, she went on to collect $22,888 in benefits. According to a 2002 Congressional Research Service report on “Social Security Reform,” workers who retired at full retirement age in 1980 got back all they paid into Social Security, with interest, in 2.8 years. On the other hand, someone can pay into the system his whole working life and, if he dies upon retirement without dependents, his “savings account” dies with him. Even George W. Bush recognized the nature of the system:
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