Social Security: What It Is and How to Fix It

Social tribute: What It Is and How to hold It Franklin Roosevelt, as a tumble of the New Deal, originally found Social Security in the 1930s. It was formally cognize as the Social Security operate, but the Act is also known as the Old fourth dimension Pension Act. The Act provided expediencys to retirees and the unemployed, and a chunk sum gain ground at death. Payments to received retirees are financed by a payroll department evaluate on current workers w times, one half as a tax on the payroll and half paying(a) by the employer. The initial tax rate was 2.0% of the first $3,000 of the employees earnings, divided equally between the employee and the employer. Later, in 1950, when it was raised to 3.0%. Even subterraneous than that, in 1956, it was changed to 4.0%. The taxes were first peaceful in 1937, also the assort in which the first benefits were pay, namely the lump-sum death benefit give to 53,236 beneficiaries. The original 1935 Act nonrecreational retirement benefits only to the chief(a) worker. many a(prenominal) types of people were excluded, mainly bring about workers, the self-employed, and anyone employed by an employer of few than ten people. These limitations covered just about half of the noncombatant excavate force in the join States. In 1939, the 1937 Act was amend in three grave ways.

For one, the widowed, nonworking spouse of somebody authorise to an old-age benefit also became entitle to an old-age benefit. Also, survivors (widows and orphans) became qualified for a benefit. Finally, Retirees who had never paid any FICA taxes became eligible for old-age benefits. This feature was precise touristy among the millions of elderly Americans hard stool by the bulky Depression. In 1956, disability benefits were added. Also, women were allowed to retire at age 62 with lessen 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 death chair Lyndon B. Johnsons Great corporation program. Throughout the mid-fifties and...If you fate to get a extensive essay, order it on our website: Ordercustompaper.com

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