Social Security: What It Is and How to Fix It

Social Security: What It Is and How to Fix It Franklin Roosevelt, as a dismantle of the New Deal, originally established Social Security in the 1930s. It was formally known as the Social Security operate, exactly the Act is also known as the Old while Pension Act. The Act provided expediencys to retirees and the unemployed, and a chunk sum returns at death. Payments to current retirees are financed by a payroll tax on current workers w get along withs, one half as a tax on the payroll and half remunerative by the employer. The initial tax rate was 2.0% of the first $3,000 of the employees earnings, shared out equally between the employee and the employer. Later, in 1950, when it was raised to 3.0%. Even subterranean than that, in 1956, it was changed to 4.0%. The taxes were first collected in 1937, also the conformation in which the first benefits were pay, namely the lump-sum death benefit stipendiary to 53,236 beneficiaries. The original 1935 Act paid retireme nt benefits only to the chief(a) worker. many a(prenominal) types of people were excluded, mainly farm workers, the self-employed, and anyone employed by an employer of less than ten people. These limitations covered approximately half of the noncombatant sweat force in the United States. In 1939, the 1937 Act was revise in three important ways.

For one, the widowed, nonworking spouse of somebody empower to an old-age benefit also became entitled to an old-age benefit. Also, survivors (widows and orphans) became eligible for a benefit. Finally, Retirees who had never paid any FICA taxes became eligible for old -age benefits. This feature was precise ge! neral among the millions of elderly Americans hard hit by the bulky Depression. In 1956, disability benefits were added. Also, women were allowed to retire at age 62 with trim benefits at 70%. Then, in 1961, retirement at age 62 was extended to men, and the tax rate was increase to 6.0. Medicare was added in 1965 by the Social Security Act of 1965, occasion of electric chair Lyndon B. Johnsons Great Society program. Throughout the mid-fifties and...If you take to get a full essay, order it on our website: OrderCustomPaper.com

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