[ancient_geezer]

With the huge increases in taxes that are not considered income taxes, ie FICA, the lower paid among us pay much more than it seems.

Ahem, SS tax is an income tax and goes into general revenue the same as the individual and corporate income taxes, and is a "Social Security" tax in name only, it collected totally independantly of any program same as every other tax.

The SS program receives its funding by appropriation and sales of treasury bonds and notes to be paid off out of general revenue receipts(taxes) the same as any other federal program. Social Security, despite political rhetoric to the contrary, is neither an insurance nor a retirement program.

 

HELVERING v. DAVIS, 301 U.S. 619 (1937)

• Title VIII(Social Security Act), as we have said, lays two different types of tax, an 'income tax on employees,' and 'an excise tax on employers.' The income tax on employees is measured by wages paid during the calendar year. Section 801 [26 USC 3101]. The excise tax on the employer [26 USC 3111] is to be paid 'with respect to having individuals in his employ,' and, like the tax on employees, is measured by wages.
• . The proceeds of both taxes are to be paid into the Treasury like internal revenue taxes generally, and are not ear-marked in any way. Section 807(a)[26 USC 3501]. There are penalties for nonpayment. Section 807(c), [26 USC 7203].

 

Title 26 US Code Subtitle C Sec. 3101. Rate of tax

• (a) Old-age, survivors, and disability insurance
  In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section (a)) received by him with respect to employment (as defined in section (b)) - --------------------------------------------------------------------- In cases of wages received during: The rate shall be: ---------------------------------------------------------------------
  1984, 1985, 1986, or 1987 5.7 percent
  1988 or 1989 6.06 percent
  1990 or thereafter 6.2 percent.
  -------------------------------

• (b) Hospital insurance
  In addition to the tax imposed by the preceding subsection, there is hereby imposed on the income of every individual a tax equal to the following percentages of the wages (as defined in section (a)) received by him with respect to employment (as defined in section (b)) -
  • (1) with respect to wages received during the calendar years
    1974 through 1977, the rate shall be 0.90 percent;
  • (2) with respect to wages received during the calendar year
    1978, the rate shall be 1.00 percent;
  • (3) with respect to wages received during the calendar years
    1979 and 1980, the rate shall be 1.05 percent;
  • (4) with respect to wages received during the calendar years
    1981 through 1984, the rate shall be 1.30 percent;
  • (5) with respect to wages received during the calendar year
    1985, the rate shall be 1.35 percent; and
  • (6) with respect to wages received after December 31, 1985, the
    rate shall be 1.45 percent.

Title 26 US Code Subtitle C Sec. 3501. Collection and payment of taxes

• (a) General rule
  The taxes imposed by this subtitle shall be collected by the Secretary and shall be paid into the Treasury of the United States as internal-revenue collections.

Nothing has changed todate inspite of all the political rhertoric about "lock boxes" and "Trust Funds" for SS/Medicare funds, the tax that is supposed to be levied for SS/Medicare is indistinguishable in operation from what we normally refer to as the Income Tax, and is paid into general revenues in just the same manner.

THE SOCIAL SECURITY TRUST FUND FRAUD

CRS Report for Congress (98-422 EPW)
Social Security: and the Federal Budget:

"Its taxes like all other federal funds flow into the U.S. Treasury and its benefit payments flow out of the U.S. Treasury. The Treasury Department issues federal securities to the Social Security trust funds to reflect receipt of these taxes, and redeems securities from the trust funds to reflect Social Security expenditures, but the money itself flows to and from the Treasury."

"Taking the Social Security trust funds "off budget" has not changed how Social Security funds are handled. They are treated the same way today as they were in 1937 when Social Security taxes were first levied -- the tax receipts flow into the U.S. Treasury and benefit payments flow out of the U.S. Treasury. The Treasury Department issues federal securities to the Social Security trust funds to reflect the receipt of these taxes, and redeems securities from the trust funds to reflect Social Security expenditures, but the money itself flows to and from the Treasury. "

"While the trust funds have an important role in monitoring the finances of the program and maintaining its fiscal discipline, they are basically accounting devices. The federal securities they hold are not assets for the government. When an individual buys a government bond, he or she has established a claim against the government. When the government issues a bond to one of its own accounts, it hasn't purchased anything or established a claim against some other entity or person. It is simply creating a form of IOU from one of its accounts to another. It certainly establishes legal claims against the government for the Social Security system (i.e., it is a legal form of indebtedness of the government and does count as part of the federal debt; see Table 3 on the next page), but the system is part of the government. Those claims are not resources the government has at its disposal to pay for future Social Security claims. Simply put, the trust funds do not reflect an independent store of money for the program or the government, and taking Social Security "off budget" did not change this. "

What Social Security Trust Fund

"The U.S. Supreme Court ruled in Fleming v. Nestor (1960), 363 US 603; that there is no Constitutional right to Social Security benefits. Social Security benefits can legally be cut or eliminated et any time, and beneficiaries have no recourse. The Court held that, "To engraft upon the Social Security System a concept of 'accrued property rights' would deprive it of the flexibility and boldness in adjustments to ever changing conditions which it demands."

[Hunble]

Outstanding links, and I applaud you for taking the effort to do the research.