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Social Security and Medicare Along With Obama Care Are Taxes [F1 552]

Updated on June 18, 2019

Even President Trump has not addressed the real problems of the Democrat Created "Entitlements"

The inherent problem of these so called Entitlement programs of Social Security, Medicare and Obamacare is that they were never implemented to be more than a tax.

Social Security

Or what I like to call, waiting to die retirement.

Social Security was never implemented to cover the benefits stages. Unlike a pension plan such as the defined benefits plan given to all federal employees, Social Security is vague and ambiguous.

The age of retirement keeps moving, from 65 years old, to 68 years old today.

There is no cutoff of having to contribute into FICA. As long as a person earns a wage they must continue to pay into FICA. That is more consistent with a TAX than a retirement system. And this is true even while on SS benefits.

The entire entitlements program is not only not vested, it lives and dies at the will of the congress.

Goal of this article

  • To look objectively into the Social Security Act from 1935 when it was passed until today when it is convoluted and still not funded to keep solvent.

Social Security Act and its additions over the years till today has turned the possible good intentions of president Franklin Delano Roosevelt into a PONZI Tax Scheme that has burdened the business and the people.

Don't confuse the dependency of people to rely on the Social Security and the United States Welfare system with an actual useful benefit.

  • It is more accurate to compare the US Welfare System with a Drug Dealer giving free samples to bring in new business.
  • Once hooked on the drugs the drug user can't live without the drug.
  • That is not a benefit or a good thing. It is just the nature of the beast.

Of course the government doesn't give free samples, but the rest of the analogy works.

While it is not mentioned in this article, there is also the absurdity of the Social Security Retirement.

1. The new people coming into the FICA wage earner TAX are 18 or younger. That means that they will have to pay into FICA for SS until they are 62 for a partial benefit or 68 for a full benefit. But by the time they are 68 congress could have raised it to 70 and over.

2. Government workers Retirement (FERS) vests, while SS doesn't, it is the whim of Congress to whether it even exists.

  • There is no vesting of SS.
  • FERS is only 20 years to retire. Many government workers are retired even before the age of 55, and certainly by the age of 60.
  • SS is 68 for the new people and if they get a supplemental job while they are on SS benefits the government makes them contribute back into SS. How does this make sense? When government employees retire under FERS, they never have to contribute to that retirement benefit.
  • SS is managed or mismanaged by Congress while FERS is privately managed.
  • FERS benefits are defined at the beginning while SS is determined by congress.
  • Government employees retire when they are still young enough to enjoy life. SS retirees are waiting for God, or a doctor.

Some Things about US Social Security

Click thumbnail to view full-size

The United States Government has been involved in wars and social micro managing

For the purposes of this article, I will skip the gory details and look at the philosophy of the government programs. Specifically, the target of this article is the United States Social Security Program, which was the idea and creation of president Franklin Delano Roosevelt.

  • Affectionately known as FDR, he proposed a social system during the great 1929 Untied States Depression. This would be called the Social Security System but since its passing as a law in 1934, it has become much more and accomplishing much less.

The Social Security Act

The Social Security Act was actually signed into law on August 14, 1935 by president Franklin Delano Roosevelt.

  • This act focused on the elderly, but it is tenuous to conceive how this was any help for them during the depression. Twenty seven percent of the US people were unemployed during the depression. The depression in my opinion was not helped by any of the social programs initiated and implemented by president Franklin Delano Roosevelt. The depression started in 1929 and end in 1941.

In my opinion, it was the war that started on December 7, 1941 that eventually ended the depression in the United States.

  • And it was the end of the war that started the decade of the 1950s United States prosperity. Probably the last era of prosperity in the United States. The times of flowing money and spending by the people after the 1950s were the result of artificial pumping of the economy due to economic bubbles like the dot com bubble in the 1990s.

The problem with artificial bubbles is they have no real foundation and they eventually bust, leaving behind a sick economy.

Social Security could it have been done better?

Setting aside the bypass to benefits from the current Social Security System given outside of the Retirement benefit, what has the Retirement benefit done for the people.

1. The original age for retiring on the Social Security Act was 65 years of age.

Today we are seeing this pushed slowly but surely towards 70 years of age.

  • So the people in 1935 that were mandated to participate into the Social Security TAX System would not be able to retire normally until they were 65 years old.
  • There would also be a minimum number of years to qualify for getting any of these benefits.
  • Say that the average worker in 1935 was around 25 years old, they would have to wait 40 years to Retire under the Social Security System.
  • How does that help them during the depression, when jobs are scare?

The Social Security System was posed by president Franklin Delano Roosevelt as a National Welfare System that included Unemployment Benefits.

  • In Reality it was a TAX, and later United States Supreme Court Cases would verify it as a TAX.

The Social Security System of president Franklin Delano Roosevelt is really a United States Government PONZI scheme.

  • It requires a huge younger group of workers to to contribute the funds into the Social Security Fund to pay for the smaller group of older workers that are close to retirement age.

The PONZI element is that now 82 years later the tide is turned to where there is a large number of older people that are going to retire or already have retired. There just isn't a appropriate number of young workers entering the workforce to keep the fund solvent.

  • The other interesting aspect is that Social Security mandates that the Employer make contributions matching those of the Employee.
  • In addition, the Employer is responsible for the bookkeeping and the payment of these withheld Social Security Contributions to the US Treasury.

In 1935, the Social Security Act didn't apply to All Workers, or even All Wage Earners.

For example, they didn't include Government Workers or School Teachers.

  • But overtime the PONZI effect of the Social Security System needed an influx of more workers contributing to the System to pay for the increasing numbers of people that were retirement age.
  • That is why they have inched up from the original age of 65 years old towards 70 years old.

The first Social Security Taxes were collected January 1937 With first 1 time, lump-sum payments also made that same month. Starting January 1940 there were Regular ongoing monthly benefits.

Social Security Act and additions to it.

Under the 1935 law, Social Security only paid retirement benefits to the primary worker.

  • In 1939 survivors benefits and benefits for the retiree's spouse and children were added to the law.
  • Disability benefits were added in 1956.

I mention this because this article is focused on the original benefit as a Retirement for the primary worker.

The PONZI weakness starts in 1984

In 1984, All members of Congress,President, Vice President, Federal judges, and most political appointees, were now contributing the Social Security program.

So, it looks like after skipping out 47 years, the Social Security PONZI scheme sucks them in like the rest of us. But, don't feel bad for them, because they have in addition to Social Security the Federal Employee Retirement System.

Federal Employee Retirement System 1984, and activated in 1987

The Federal Employees Retirement System (FERS)

  • US Civil Service FERS - Jan 1, 1987
  • FERS replace a previous retirement system.


  • It is an Annuity having a , a defined benefit plan,
  • That plan means that there were never be any less benefit for the employee regardless of the economic conditions. The Benefit is Defined in the beginning.
  • Unlike Social Security which can not only be lowered, but it can even be eliminated by Congress.
  • FERS also includes a 401k like plan called a Thrift Savings Plan (TSP), a defined contribution plan

Why wasn't this type of plan created for the private sector employees?

How is it that the Public SERVANTS can have a better Retirement System than their MASTERS the American People?

  • If we applied are FICA contributions and the matching ones from our Employer and put it into a Defined Benefits 401k wouldn't we be better off than under the Social Security System.
  • In any case, the Employee contribution is the same, but that is where the FERS and SS diverge.
  • In the next section, if there are enough comments, I will go over these major differences.


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    • bradmasterOCcal profile imageAUTHOR


      2 years ago

      This article exceeds the suggested goals of hp


      Need Some Goals?

      Articles with these attributes typically get 300% more traffic.











      1552 words in this article.

      This is in the 1250+ range.

    • bradmasterOCcal profile imageAUTHOR


      2 years ago

      Retirement, Government Workers get real Retirement, Public gets Social Security Tax Retirement


      The government workers are the servants of the people, yet they are given benefits and retirements that most of the people cannot get.

      The "People" are paying their Public "Servants" expensive benefits and retirements that cannot be sustained by this economy and this significantly increases the tax burden.

      • This tax burden is far more costly than the perceived drain on the Treasury from Social Security Entitlements.

      • Compare these benefits against what is offered to those retirees that only have Social Security, with the Federal Employee Retirement System for government workers, including Congress.

      These government workers not only get a private pension, they are also eligible for Social Security.

      Retirement: Government Workers versus Public

      There are basically 3 kinds of retirement plans; Government, Union and Public.

      • All 3 of these retirements all include Social Security, while the Public Retirement is only Social Security.

      • This hub doesn't include 401K, IRAs and other savings programs. The purpose here is to contrast the main public retirement of Social Security against the government version of retirement. The government workers come out far ahead even though they are public servants, because their system is paid for by the taxpayers. They get both FERS and Social Security.

      Government Retirement [Federal Employee Retirement System [(FERS)]

      Retirement for Union Members is not as good as government retirement but it is better than Social Security alone.

      Public Retirement is basically Social Security

      FERS (Federal Employee Retirement System) is a government union contracted retirement system for government employees.

      Social Security is an entitlement program which is a TAX with a promise of a retirement.


      While all government pensions are costly burdens to the taxpayer, there is a need to pay back those in the government that put their lives on the line to protect

      The military, police, fire, rescue and those kinds of jobs do need special attention from the taxpayer.

      • They earn their pensions and many of them may not live to enjoy them.

      The politicians and the bureaucrats don't need special attention and they should be put on par with their counterparts in the private sector.

      • If private corporations cannot afford to give pensions to their civilian workers, then the taxpayers cannot afford to provide pensions to the bureaucratic government "workers"


      Even Though This Hub Focuses on Federal Government Workers, It Does Apply In Concept To State And Local Government As Well

      Basically all government workers that get these kinds of superior benefits are unionized, while most private sector employees are not.

      • It is interesting to note, that workers have to unionize when they work for the government.

      • The whole concept of unions was to have workers be able to control tyrant companies to get benefits and good working conditions.

      • Surely this is not the case for the government as an employer. Government are the ones that set the protections for the workers in the country, why would the government need to be controlled. The government should mimic what they force on the private sector.

      The government workers, Federal, State and Local are increasing in numbers across the country, and they are causing a tax burden on the people, to continue to give them benefits that the rest of the country, just doesn't have access to anymore


    • bradmasterOCcal profile imageAUTHOR


      2 years ago


      I totally agree with you. It is hardly an Entitlement, it is a typical poorly managed government program that we All pay into.

      For people such as yourself and the tens of millions that are on SS retirement or will be in the near future, the government needs to keep it funded and operational.

      As you mentioned, it is the government that stole from it, and didn't invest the contributions effectively. The government should still change some of the ridiculous parts of SS for those retired people.

      First, once you are getting benefits from SS retirement, you should no longer have to contribute to SS. This case arises when you are on SS retirement and need to continue to work, as SS benefits average $800 a month, even though some people can get over $2500 a month. In either case, this just isn't enough money for many people.

      So they get a job while on SS retirement, only to have to continue to contribute. When a government employee retires on Federal Employee Retirement Defined Benefits System, usually 20 years under that system, they no longer have to contribute to it.

      Second, the absurd government rule that SS benefits can be taxed as ordinary income if someone is making too much money while being retired. First, if it is to be taxed, it should be taxed as a long term investment, no ordinary tax.

      Third, why has the $255 SS death benefit stayed at that number since 1935?

      Fourth, when a person on SS retirement dies the government wants the last monthly or part thereof their benefit check returned by the family. That is petty, if not demeaning and cheap.

      Fifth, because the government is the wrong doer in the SS debacle, they should foot the bill and do the right thing for those people that are no where near retirement age.

      That being to convert the SS contribution including the employer share into a private 401K plan. As I mentioned in the article, government employees have a defined benefit type 401K. Meaning their benefits are guaranteed and they have their own account, and the beauty is that account is privately managed.

      So I suggest that the government remove the FERS and convert everyone over to the same 401k,I mentioned. To cope with the costs of this, they can offer lump sum buyouts to SS retirees, and even gov employees.

      The unfunded costs of these government retirements need to be reigned in, after all these a public SERVANTS and they are getting benefits that should be given to the MASTERS, the people.

      What kind of system puts servants ahead of the master?

      Keep in mind under the current SS system, there is NO Guarantee that the gov will give future retirees and benefits, as the system works at the will of the politicians.

      Just a thought, and thanks for the comment.

    • breakfastpop profile image


      2 years ago

      If the government didn't steal from the fund, the system might be in better shape. Perhaps, there will be a better way in the future, but for those people, like me, who paid into the system for years, we want the money promised to us. I don't think of SS as an entitlement at all.

    • bradmasterOCcal profile imageAUTHOR


      2 years ago


      Once again, you provide nothing. You always make your outburst personal. I am leaving your comment as it is your trademark.

      You might consider actually commenting on the subject in this article. Can you honestly make a valid argument refuting my opinion on Social Security.

      BTW, it is not just my articles that don't get comments, it is pervasive across the hub. HP should have tens of thousands of people and views for even the lowest interest subjects should have more than hundreds of views and and dozens of comments.

      HP has always been the place where people are apathetic, and this is a fact that can be verified looking at the number of views and comments. These stats are available on hp.

      You are more than welcome to comment on the article, but please desist from personal attacks.

      Have a great day!

    • Ericdierker profile image

      Eric Dierker 

      2 years ago from Spring Valley, CA. U.S.A.

      Brad please just delete this comment. It is meant for you. "Because of past experience in the lack of comments this article will be phased.

      The first stage is just getting you acquainted with the subject of the article and leading you to the goal of the article."

      Brad this just seems like a college professor with no charisma. I don't need to get "first acquainted" to your biased opinion. I already know the subject and can make my own decisions. I respect your opinions. But your style is so abrasive and where do you get the idea that it is your readership that makes us not comment or even follow.

      Just a thought.


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