Social Security: What It Is and How to Fix It

Social Security: What It Is and How to Fix It Franklin Roosevelt, as a reveal 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 snip Pension Act. The Act provided expediencys to retirees and the unemployed, and a chunk sum do good at death. Payments to current retirees are financed by a payroll department tax on current workers wold ages, one half as a tax on the payroll and half stipendiary by the employer. The initial tax rate was 2.0% of the first $3,000 of the employees earnings, dual-lane equally between the employee and the employer. Later, in 1950, when it was raised to 3.0%. Even ulterior than that, in 1956, it was changed to 4.0%. The taxes were first collected in 1937, also the split up in which the first benefits were pay, namely the lump-sum death benefit compensable to 53,236 beneficiaries. The original 1935 Act paid retirement benefit s only to the chief(a) worker. umpteen 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 apprehend force in the United States. In 1939, the 1937 Act was revise in three important ways.

For one, the widowed, nonworking spouse of somebody entitle 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. Thi s feature was precise democratic 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 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 professorship Lyndon B. Johnsons Great Society program. Throughout the mid-fifties and...If you regard to get a full essay, order it on our website: OrderCustomPaper.com

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