WHAT THE HELL IS SOCIAL SECURITY ANYWAY?

ssiOne of my harshest critics is someone who seems not to understand just what Social Security is and how it is funded. This person has also has never been self-employed and does not understand what happens tax wise when someone either owns a business or is self employed and has to file a form 1099.

Those of you who are NOT self employed may want to pull out your check stub and take a good look at it. You will see that you pay¬† 6.2%per year for social security¬† and your employer pays the same 6.2%. If you make more than roughly $113, 000 per year, you only pay the percentage on that gross amount. You are also paying a small amount for medicare. If you are self employed, you pay double since you are picking up the employer’s share as well.

Social security is not an income tax. It is considered an annuity, which is the same as some life insurance policies. Social Security funds are separate from the general revenue fund generated by federal income taxes of individuals and businesses. By law it is not supposed to be touched but congress has always taken loans from it which is why Social Security is in trouble in the first place. If congress had kept their hands out of the till, Social Security would be self funded and there would not be the problem with it that exists right now.

One thing that needs to be understood about Social Security is that it was never meant to be a primary income source for retirees. It was intended to be an ADDITIONAL source of income for those who had also had a pension plan or other savings to fund people in their retirement years. The amount I get in social security is not all that much when you take into account how much it costs to live in today’s economy.

It is true that one can make a minimum amount of money over their social security benefits without having to pay your benefits back, but in today’s economy, it is hard for a 62 year old who has high blood pressure, cataracts in his right eye, severe hearing loss(tinnitus)as a result of 35 years of truck driving. This problem is magnified by the fact that the US economy is in the toilet due to a years long recession.

I receive the Social Security funds that I PAID INTO. Nobody paid my Social Security for me. I have been paying into it since I started working at the age of 16. I also paid into medicare, but since I am not yet 65, I cannot get it. I would suggest before people start accusing someone of mooching off off the system that they take the time to study what it is they are talking about. That way they might not come across as a bunch of ignorant blithering idiots.

Stay tuned

MURT

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