The Social Security Act, which is part of Title 42 of the United States Code, was enacted in 1935 as a U.S. government sponsored, voluntary pension program for the benefit of individuals who wished to VOLUNTARILY participate in the program. The Act is administered by the Social Security Administration which handles the administration and payment of benefits under the provisions of the law.
The tax upon which the old age benefits is based is collected by the Internal Revenue Service under the provisions of Title 26 of the United States Code, otherwise known as the Internal Revenue Code (IRC).
Monies collected by the IRS are not sent to the Social Security Administration to fund their administrative and disbursement activities but rather end up in the general fund along with other taxes collected. An accounting "gimmick" is created to lead the public to believe that the monies paid in are held in a "trust fund".
There is no provision in the United States Constitution for the federal government to be in the insurance business. Although it may be technically correct that a so-called "trust fund" exists, the truth is that it contains no monies or other assets, only governmental I.O.U.'s promising to pay money to itself.
Social Security is NOT a contract as some allege, but a political promise upon which Congress could renege at any time. Monies disbursed by SSA must be appropriated by Congress each year as needed. Since no contractual obligation exists for the payment of any benefits, technically the benefits could be terminated at any time if Congress did not appropriate the funds.
This A.L.E.R.T. deals primarily with those statutes relative to the imposition and collection of the tax. References to Code sections are those found within Title 26 of the United States Code, which is a codification of the Statutes at Large as enacted by the Congress of the United States. All Code sections shown herein are copied directly from Title 26, United States Code precisely as printed therein.
All Internal Revenue taxes, including the personal and corporate income taxes, self-employment taxes, as well as the so‑called Social Security tax, are imposed and collected under Title 26, United States Code, also known as the Internal Revenue Code (IRC).
The Social Security tax is imposed by the Code sections in chapter 21, subtitle C of the IRC titled: "FEDERAL INSURANCE CONTRIBUTIONS ACT".
Before examining the actual wording contained in these sections, it is important to understand that courts have repeatedly held that a statute means only that which is stated in the statute and nothing more.
Southerland's Rules of Statutory Construction, an authoritative legal guidebook, under section 66.01 titled "Strict Construction of Statutes Creating Tax Liabilities" explains the limited application of tax laws. The guidebook refers to the U.S. Supreme Court decision of Gould v. Gould, 245 U.S. 151, which states:
"In the interpretation of statutes levying taxes it is the established rule not to extend their provisions by implication beyond the clear import of the language used, or to enlarge their operation so as to embrace matters not specifically pointed out. In case of doubt, they are construed most strongly against the government and in favor of the citizen."
So, the Supreme Court tells us that IRC sections mean only that which is stated; nothing else can be added to that which is stated in the Code section.
With this Supreme Court ruling in mind, let's look at the wording of sections 3101(a) and 3111(a) which are imposition statutes for the (so-called Social Security) FICA tax -- section 3101(a) applying to employEES and 3111(a) to employERS respectively.
(CAPITALIZATION for emphasis is added to certain phrases, Code sections and court decisions in this article.)
Sec. 3101. Rate of Tax.
(a) Old-Age, survivors, and disability Insurance. In addition to other taxes, there is hereby imposed on the income of every individual a tax EQUAL TO THE FOLLOWING PERCENTAGES OF THE WAGES (as defined In section 3121(a)) received by him with respect to employment (as defined in section 3121(b))-
BINABASA MO ANG
The Fight Against Tyranny and Slavery in America
Non-FictionThis book is the culmination of years of research and the product has been compiled into this book. It covers the true events that happened to the author in his struggle for Religious Freedom in the work place, struggle from the Illegal withholding...
