Social+Security


 * Social Security**




 * HISTORY-** Social Security was signed into law into 1935 by President Franklin Roosevelt as part of the New Deal. It was meant to help unemployment, poverty, widows and fatherless children. The 1935 Social Security Act provided that payments were to be given retirees, half by taxes on current workers and the other half by employers. It also provided assistance to blind, families with dependent children, older people, unemployed insurance, and public health services. In 1939, due to the Recession of 1937, benefits became available to retirees sooner and it became a pay as you go system drastically changing the original Act. Over the next 30 years, the retirement age was increased as life span increased as well as the tax rate on workers to 6%. The next major change came in the form of the 1965 amendment that added Medicare to the Social Security Act. In 1975, a cost of living adjustment rate was changed to benefit monthly payments from Social Security as well as increasing the amount that retirees received from it. Social Security became a touchy subject in 1980s due to how much it was costing and any change to it would have meant benefit reductions and tax increases in order to keep the program going. In 1983, the National Commission on Social Security Reform reported that taxes on those who earned more and were collecting Social Security was needed in order to sustain Social Security with the baby boomer generation predicted to retire soon.

Another thing that Congress brought into law is known as Cost of Living Adjustment (COLA) which is a formula that adjusts the benefits that Social Security dependents receive every year as inflation goes up, that makes sure that the cost of living standards can be adjusted with payments by Congress. Another Act that was passed by Congress was the Supplementary Security Income - SSI which can be applied for by immigrants and those who are non US workers but didn't pay into Social Security, they still receive some funds, just not Social Security. This is a supplementary fund but not directly part of the Social Security Fund. __Social Security Act (1935)__ - provided for the general welfare by establishing a system of Federal old-age benefits, and by enabling the several States to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws; to establish a Social Security Board; to raise revenue; and for other purposes __Revenue Act of 1942__ - increased individual income tax rates, increased corporate tax rates (top rate rose from 31 % to 40 %), and reduced the personal exemption amount from $1,500 to $1,200 (married couples) __Revenue Act of 1943__ - federal excise taxes on, among other things, alcohol, jewelry, telephones, and admissions, and raised the excess profits tax rate from 90 % to 95 % __Federal Insurance Contributions Act (1945)__ - a United States payroll (or employment) tax imposed by the federal government on both employees and employers to fund Social Security and Medicare __Revenue Act of 1945__ - repealed the excess profits tax, reduced individual income tax rates (the top rate fell from 94 percent to 86.45 percent), and reduced corporate tax rates (the top rate dropped from 40 percent to 38 percent) __Tax Reform Act of 1969__ - established individual and corporate minimum taxes, established a new tax schedule for single taxpayers, and lowered the maximum rate on earned income from 70 percent to 50 percent __Balanced Budget and Emergency Deficit Control Act (1985)__ - established specific deficit targets and a sequestration procedure to reduce spending if those targets were exceeded __Senior Citizen’s Right to Work Act (2000)__ - eliminated the Social Security "earnings test" which limited the amount of outside income retirees can make without suffering a reduction in Social Security benefits
 * LEGISLATIVE-** Legislative has played a role in signing Social Security Act and passing amendments since its creation in 1935. Those amendments over the years have included increasing who is giving the benefits of Social Security such as women workers, divorcees, increasing the dependent children age to 18, disabilities, welfare. Congress also passed Medicare into law providing healthcare for the elderly and giving protection rights to them.

Executive has played a role with the Secretary of Finance who manages the Social Security Fund and watches how much is paid over the years and manages the treasury itself. Executive also played a role by FDR's creation of Social Security Act and signing into law in 1935. Further amendments were headed up by other presidents including Ronald Reagan who helped increase the tax rate, add employees into the Social Security system and the age you can receive full benefits was extended and Social Security benefits were made taxable by half.
 * EXECUTIVE-**

//Helvering v. Davis (1937)// states that Social Security Tax is part of Congress' right to tax the people and thus is Constitutional. //Goldberg v. Kelly (1970)// states that due to the 14th amendement "due process" clause that a recipient must have a trial before can be deprived of government benefits. //Weinberger v. Weiseinfield (1975)// - says under equal protection clause in 14th amendment that widowers are entitled to deceased wife/husband's benefits.
 * JUDICIAL**- //Steward Machine Company v. Davis (1937)// states that Social Security Act is Constitutional and because of the Great Depression that such an act was needed and would harm the nation if it wasn't upheld.


 * INTERRELATED ACTIVITY-**



In Social Security, FDR passed the Social Security Act in 1935 and since then, presidents have increased tax and made the retirement age for full benefits gone up (Reagan was one of them). Congress has carried out Social Security Act by further adding Medicare onto the Act but has also worked with the executive branch by amending Social Security Act to give benefits to women, divorcees, disabled over time as well as increasing taxes on workers and adding a cost of living adjustment. Congress has also worked to ensure that Social Security remains viable over the years by allowing more to access it as well as forming Committees such as in 1983 that reviewed Social Security's status and made recommendations for the future.The Supreme Court plays role by declaring Social Security Act Constitutional in several cases and upholding the benefit rights under the Constitution making Social Security a right to be claimed. Together the government works as a whole by supporting each other to make Social Security viable through executive, legislative and judicial branches with executive maintaining and adjusting order and approving reforms made by Congress and the judicial branch upholding the Constitutionality of such acts.


 * ROLE OF NON GOVT GROUPS ON POLICY PROCESS**- Since Social Security impacts all Americans, there aren't really specific interest groups that aren't impacted by it. Almost all Americans care when a change to Social Security is made, there is pressure on the government by the American public not to decrease benefits. It is something all Americans want when they retire and thus most groups' interest lay with Social Security being kept. Doctors to farmers to the local McDonald's worker are all paying into Social Security and thus are all impacted by it and all have an interest in it. Doctors who receive benefits from having Medicare patients have an interest in funding not being cut to those who allow Medicare patients into their practice, there are immigrant works dependent on SSI, there are the disabled groups who receive the paychecks from Social Security because they're unable to work, in general all groups are impacted by this and thus all interest groups remain in it and it become known as "Third Rail of American Politics" because it cannot be touched without an uproar from the American public.




 * IMPACT OF POLICYMAKING ON AMERICAN PUBLIC** - Any change to Social Security will profoundly impact all Americans. American can retire at age 62 and pay into Social Security from their first paycheck as a teenager. A tax is always put on Americans' paychecks before you even receive your paycheck. Social Security impacts every American family from those who have to pay taxes to those who are dependent on the checks that they receive from Social Security Act, workers pay into Social Security, retirees eventually benefit from it, those who cannot work, are widows, have disabilities or are on welfare also benefit from Social Security. When there are less workers and more retirees, this increases taxes on American people, when there are more workers and less retirees, then taxes go down. This impacts all Americans because all Americans will eventually retire and hope to use their paycheck from Social Security. Another impact is the retirement age that someone can retire and get their benefits they've been paying into since they started working. As life expectancy goes up, so does the age of retirement for benefits from Social Security. Any changes to Social Security will impact all Americans in one way or another.




 * CURRENT STATUS OF SOCIAL SECURITY-** Social Security is facing large issues with the Recession of 2007 and the baby boomer generation of post war WWII about to retire. However, this is the one area that politicians do not want to touch. It has become known as the "Third Rail of American Politics". This can be seen in how Obama excluded Social Security in those that are to be cut funding from in his big stimulus bill. Social Security is never to be touched despite its struggling because the American public likes money and is dependent upon the money from Social Security. The cost of Social Security is going up over the years as life expectancy increases and more people are retiring than being birthed. However, the general public does not want their benefits decreased and their taxes increased which is what any reform to Social Security would include.


 * ANALYSIS-** Social Security was created during a time that was meant to aid and prop up the American people, it was meant to give assistance but it has become a large burden on the working population. In the future, it is going to cost the working generation in benefits and generally not be worth the outcome. People are living longer now, the retiring generation is bigger and will drain Social Security meaning without drastic reforms the generations that retire after the baby boomer generation will receive little to no benefits unless something is done to the program but the problem lays in the fact that it is political suicide to talk about reforming or change Social Security in any way shape or form because it has become such a big part of American life. The only way for the future to be secure is to start encouraging trust funds that are built from a young age outside of Social Security because Social Security will not have the reserve to support future generations after the baby boomer generation. The only way for Social Security to exist is to raise taxes on corporations, those earning more and to stop fighting the raising taxes. That is the only way to sustain these kind of programs regardless of what the American public wants. If this program is to remain in existence for the future, then we need higher taxation so that Social Security can provide for the future.



WORKS CITED: [|http://en.wikipedia.org/wiki/Social_Security_(United_States]) [] [] [] womenscolleges.org searchwarp.com http://mrbruceshistory.wikispaces.com/Separation+of+Powers3cbpp.org thismodernworld.com gwinnettforum.com