Debunking Social Security myths working their way through the Internet

I got an email today from a cousin of mine, let’s call her Jennifer, who wanted to know if an email she received about Social Security is true. Assuming that she wasn’t the only one to receive it, I thought I’d explain why the content of the email is completely bogus.

The email included all kinds of claims about the origins of Social Security and the implementation of the program. Unfortunately, most of the email is so wildly false that it can only be described as intentionally deceptive. Special thanks to my friends at the Urban Legends Reference Page for several details included below.

(I’m putting content from the original email in italics)

Q: Which party took Social Security from an independent fund and put it in the general fund so that Congress could spend it?
A: It was Lyndon Johnson and the Democratic-controlled House and Senate.

Not only is this false, it is based on a misunderstanding of the whole program. Social Security has never been kept separate from “the general fund” to prevent Congress from spending it, though President Clinton recommended doing just that in 1999 in his State of the Union address. So did Al Gore during the 2000 campaign, which is why you heard so much about the “lockbox” in the last election — it was Gore’s way of saying we’d separate Social Security surpluses so they wouldn’t get spent. And, I might add, Bush promised during the campaign he wouldn’t touch Social Security surpluses and then proceeded to break that pledge after taking office.

Q: Which party put a tax on Social Security?
A: The Democratic party.

Wrong again. Ronald Reagan signed legislation to tax Social Security benefits in 1983 as a way to begin covering his record-high budget deficits.

Q: Which party increased the tax on Social Security?
A: The Democratic Party with Al Gore casting the deciding vote.

That’s sort of true. The 1993 omnibus budget bill passed a small increase on Social Security taxes, and Gore did break a Senate tie on the bill, but the legislation did a lot more than just raise Social Security taxes.

Q: Which party decided to give money to immigrants?
A: That’s right, immigrants moved into this country and at 65 got SSI Social Security. The Democratic Party gave that to them although they never paid a dime into it.

Not true. President Clinton actually signed a law in 1996 that prohibited immigrants from collecting Social Security. In 1997, Congress passed and Clinton signed a revised law that allowed immigrants who pay into the system to collect benefits.

Then, after doing all this, the Democrats turn around and tell you the Republicans want to take your Social Security. And the worst part about it is, people believe it!

Republicans do have a plan to privatize Social Security, which by its very nature would undermine the program by taking money out of a pay-as-you-go system. If money comes out for privatization, you have to either replace the funds or cut benefits to the elderly. Don’t blame Democrats for this; it’s the Republicans’ plan. If you don’t like the plan then don’t vote for the GOP.

Perhaps we are asking the wrong questions during election years. Our Senators and Congress men & women do not pay into Social Security and, of course, they do not collect from it.

Still wrong. Members of Congress pay Social Security taxes just like the rest of us and they receive Social Security benefits when they retire.

For all practical purposes their plan works like this: When they retire, they continue to draw the same pay until they die, except it may increase from time to time for cost of living adjustments.

Completely false. When elected officials leave Congress, they stop getting paid. They are eligible, however, to receive a federal pension, just like all other federal employees, but this does not mean they “draw the same pay until they die.”

For example, former Senator Byrd and Congressman White and their wives may expect to draw $7,800,000.00 (that’s Seven Million, Eight-Hundred Thousand Dollars), with their wives drawing $275,000.00 during the last years of their lives.

So wrong as to be bordering on ridiculous. First of all, Sen. Byrd is still in the Senate, he’s not a “former Senator.” Second, there is no “Congressman White” in Congress; I guess the person who made up this email also made up a representative. Lastly, and most importantly, there has never been a lawmaker in U.S. history who could expect to collect over 7 million dollars from Social Security. As of 1998, the average annuity for retired members of Congress was about $50,000. If a lawmaker retired at 65, he or she would have to live to be over 200 years old in order to receive $7.8 million.

Their cost for this excellent plan is $00.00. Nada. Zilch. This little perk they voted for themselves is free to them.

Obviously wrong. See above.

That change would be to jerk the Golden Fleece Retirement Plan from under the Senators and Congressmen. Put them into the Social Security plan with the rest of us … then sit back and watch how fast they would fix it.

Well, they’re in the Social Security plan with the rest of us. Have they fixed it yet?