Editing Social Security (section)

=== From '[[Encroaching Control]]' ===
Quote 1:
<BLOCKQUOTE>''But this isn't the tone of the testimony uttered by the experts of Social Security recently in a lawsuit before the United States Supreme Court. In that lawsuit, the experts of Social Security said it is not an insurance program. It does not have to be based on actuarial principles because it has at its beck and call the tax mechanism of the country.''</BLOCKQUOTE>
Quote 2:
<BLOCKQUOTE>''It then went on to say that Social Security dues are a tax for the general use of the government and the payment of this tax does not automatically entitle any citizen to the payment of Social Security benefits. It then goes on to say that these benefits are a welfare program at the behest of Congress and that Congress can curtail or cancel these benefit payments any time it sees fit.''</BLOCKQUOTE>
The court case Reagan refers to is Flemming V. Nestor.  Ephram Nestor became eligible for Social Security in 1955, but was deported in 1956 after it was learned he had been a [[communism|communist]] for 6 years during the 1930s.  His Social Security payments were suspended and he argued it was illegal.  The money was his, simply being held by the government.  The Supreme Court found against him.

Quote 3:
<BLOCKQUOTE>''Well, he has mentioned the tax mechanism of Social Security. In 1935, Social Security called for a three percent contribution of $3000 of annual income. Today it calls for six percent of $4800 of annual income. And if the expansions now proposed are voted, including this medical program, by 1969 it will call for eleven percent of $5000 of income and again it is no secret that the proponents of this measure are openly advocating that there should be no limit that Social Security taxes and dues should be based on gross income with no ceiling.''</BLOCKQUOTE>
Reagan is completely correct with his past information.  It was 3% of $3000 in 1935 and 6% of $4800 in 1961.  His estimates of the tax and the income for 1969 are both incorrect, but in checking what is now historical data, we find that Reagan's numbers, outrageous at the time, are actually better than reality turned out.
Reagan said it would be 11% of $5000 by 1969, which comes to $550.

The actual numbers for 1969 was 9.6% (8.4% for OASDI tax and 1.2% for Medicare) of $7800, which results in $748.80 of taxes.