I believe Josh Heath and others are wrong in their interpretation of the Social Security Act of 1935 and the Medicare Amendment of 1965.
The original Social Security Act mandated that the American employees/employers must pay a percentage of their wages into the fund and employers pay an equal amount into the fund for the employee. The act stated that these funds would be invested at 3 percent compound interest. Then when the employee had worked 10 years or longer they would receive a monthly payment from the fund when they reached 65 and retired. This was not an entitlement as many say — this was a mandated contract between the government and the employee, like an annuity and/or a premium paid to an insurance company or other entity for future benefit.
Over the years, the amount withheld from an employee/employer has increased. But the government keeps moving upward the goal post, so to speak, for retirement. Current full retirement is 66 and employee/employer deduction from wages is 6.2 percent Social Security and 1.45 percent Medicare. Total: Employee/Employer contribution is 15.3 percent.
The same is true of the Medicare amendment — employee/employer had to contribute an additional percentage to the supplement.
These acts were not something the government covered with our tax dollars to give as a benefit to recipients. This is separated dollars paid specifically to the Social Security Administration for future benefit.
This post was last modified on August 27, 2018, 4:20 pm