Social Security: What It Is and How to Fix It Franklin Roosevelt, as a geological fault of the New Deal, originally established Social Security in the 1930s. It was formally known as the Social Security operate, simply the Act is also known as the Old meter Pension Act. The Act provided expediencys to retirees and the unemployed, and a chunk sum well-being at death. Payments to current retirees are financed by a payroll department tax on current workers w get along withs, one half as a tax on the payroll and half compensated by the employer. The initial tax rate was 2.0% of the first $3,000 of the employees earnings, multilane equally between the employee and the employer. Later, in 1950, when it was raised to 3.0%. Even later(a) than that, in 1956, it was changed to 4.0%. The taxes were first collected in 1937, also the part in which the first benefits were pay, namely the lump-sum death benefit nonrecreational to 53,236 beneficiaries. The original 1935 Act pa id retirement benefits only to the chief(a) worker. many a(prenominal) types of people were excluded, mainly farm workers, the self-employed, and anyone employed by an employer of fewer than ten people. These limitations covered approximately half of the noncombatant job force in the United States. In 1939, the 1937 Act was amend in three important ways.
For one, the widowed, nonworking spouse of somebody empower 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 neer paid any FICA taxes became eligible for old-age benefits. This feature was prec! ise everyday 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 president Lyndon B. Johnsons Great Society program. Throughout the mid-fifties and...If you indispensableness to get a full essay, order it on our website: OrderCustomPaper.com
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