President Franklin Roosevelt introduced the Social Security Act in 1935 to provide income for the elderly and disabled.
Roosevelt promised that participation in the Program would be completely voluntary (it’s not). He also promised that the participants would only have to pay1% of the first $1,400 of their annual incomes into the Program.
They now pay 7.65% !
The Social Security Act also provided that the money the participants elected to put into the Program would be deductible from their income for tax purposes each year.
Of course, today the tax is no longer deductible!
The original Program also provided 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.
However, under President Lyndon Johnson, the money was moved to the General Fund!
The original Social Security Act also provided that the annuity payments to the retirees would never be taxed as income.