What year and under which president was social security tax inacted.

Dear victoalia-ga;

Thank you for allowing me an opportunity to answer your interesting
question.

President Franklin D. Roosevelt signed the Social Security Act into
law on August 14, 1935.

At the time it was enacted it was funded by a 2% payroll tax, today it
is funded by a 12.4% payroll tax. The tax has since been raised 520%
(54 times in only 65 years). It is now the largest single tax for
seven out of 10 taxpaying households. To put the increase into
perspective, in 1935 only the first $3,000 of taxpayer income was
subject to Social Security taxes, by 1971 it was the first $7,800, and
the first $72,600 of income is subject to be taxed.

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Best regards;
Tutuzdad-ga


* INFORMATION SOURCES *

THE FREEDOM TEST
http://www.cybernationoffreedom.com/text/FreedomTest.doc

SOCIAL SECURITY ONLINE – HISTORY PAGE
http://www.ssa.gov/history/fdrsign.html



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Request for Answer Clarification by victoalia-ga on 19 Jan 2003 15:42 PST

We had a small misunderstanding. My question was not formulated well.
Under which administration and in what year did social security
benefits get taxed

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Clarification of Answer by tutuzdad-ga on 19 Jan 2003 18:04 PST

Dear victoalia-ga;

I am sorry for the misunderstanding. Perhaps this will clear things
up:

The National Commission on Social Security Reform (also known as the
Greenspan Commission after its Chairman) was appointed by the Congress
and the President in 1981 to study and make recommendations regarding
the short-term financing crisis that Social Security faced at that
time. It said in part:

"The National Commission recommends that, beginning with 1984, 50% of
OASDI benefits should be considered as taxable income for income-tax
purposes for persons with Adjusted Gross Income (before including
therein any OASDI benefits) of $20,000 if single and $25,000 if
married. The proceeds from such taxation, as estimated by the Treasury
Department, would be credited to the OASDI Trust Funds under a
permanent appropriation."

The Commission’s proposal was written into a bill and the House voted
it in on March 9, 1983, passing it by a vote of 282 to 148. On March
23rd, the Senate passed its version of the bill by a vote of 88 to 9.
The House accepted the Senate’s revisions on March 4, 1983 and on
March 25th the Senate cast its final vote on the matter (58-14).

The 1983 Social Security Amendments (H.R. 1900/P.L. 98-21) were
formally enacted April 20, 1983 during the administration of President
Ronald Reagan.

Below you will find that I have carefully defined my search strategy
for you in the event that you need to search for more information. By
following the same type of searches that I did you may be able to
enhance the research I have provided even further. I hope you find
that that my research exceeds your expectations. If you have any
questions about my research please post a clarification request prior
to rating the answer. Otherwise, I welcome your rating and your final
comments and I look forward to working with you again in the near
future. Thank you for bringing your question to us.

Best regards;
Tutuzdad-ga


INFORMATION SOURCES

SOCIAL SECURITY ONLINE – HISTORY PAGE
http://www.ssa.gov/history/taxationofbenefits.html

“REPORT OF THE NATIONAL COMMISSION ON SOCIAL SECURITY REFORM”
(JANUARY 1983)
http://www.ssa.gov/history/reports/gspan.html


“1983 Social Security Amendments-- Detailed Summary”
http://www.ssa.gov/history/1983amend2.html







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it was nice to be able to clarify the question and get the expected answer