In God We Trust Blog

12 May 2008

Some Facts About Social Security

Posted by Roy Bischoff under: Guest Blogger .

This information was sent to me by Peter Anderson.

The Truth about Social Security

Volume 1, No. 8

by

Richard McDonald

The purpose of this Newsletter is to inform you of the truth
of the Social Security System.

First, before I begin to explain, I must define the term
“employee” and “employer”. The correct legal definitions of
these terms are: “Employee = working for the government, and
Employer = government or government protected workplace”. The
W-4 form is a class 5 gift tax form; by signing this form, you
are stating that you are receiving the gift of employment from
the government, so everything you receive is profit or gain as a
U.S. citizen.

In the history of the United States of America, there is
probably no more dramatic demonstration of deliberately designed
misinformation than the literature put out by the Social Security
Administration. One need go no further than three (3) decisions
handed down by the U.S. Supreme Court (two in 1937 and one in
1960,) to realize what blatant deception the current Social
Security literature contains. These cases are: Steward Machine
Co. v. Davis, 301 U.S. 548 (1937); Helvering v. Davis, 301 US 619
(1937); and Flemming v. Nestor, 363 U.S. 603 (1960). These cases
clearly enunciate the position of the Supreme Court on the Social
Security Act and the actual legal position of those who expect to
receive benefits from it. Highlights of these cases are as
follows:

1. The payroll deductions of workers do NOT go into a pool
or trust fund, but:

“The proceeds of both (the employee and the employer) taxes
are to be paid into the treasury like other internal revenue
generally, and are NOT earmarked in any way.”

[Helvering v. Davis, U.S. 619, 635 (1937)]

2. The Court points out that payroll deductions of American
workers are NOT payments on premiums for insurance of any kind,
but are simply income taxes:

“… eligibility for benefits … (does) not in any true
sense depend on contribution through the payment of taxes.”

[Flemming v. Davis, 363 U.S. 603, 609 (1960)]

3. Furthermore, payments made by employers for each of their
employees are NOT matching to be credited to the account of the
employee, but constitute an EXCISE TAX on the employer’s right to
do business. Consequently, his so called “contributions” go
directly into the general fund of the treasury.

4. People participating in Social Security payroll deductions
do NOT acquire property rights or contractual rights through
their payments, as they would if they were paying on an insurance
policy or contributing to an annuity plan. Simply put, there are
no guarantees! The Congress does have power to deny benefits to
citizens even though they had paid S.S. taxes. Also, the amount
of benefits granted are at the option of Congress. Flemming v.
Nestor, 363 U.S. 603, 610 (1960).

5. Benefits granted under Social Security are therefore NOT
considered earned by the worker, but simply constitute a gratuity
or gesture of charity. As the Court states:

“Congress included in the original act, and has since
retained a claim expressly reserving to it the right to
alter, amend, or repeal any provision of the act”.

[Flemming v. Nestor, 363 U.S. 603, 610-11 (1960)]

In effect, Social Security benefits are not unlike pensions
to be given or withheld at the discretion of Congress.
I would encourage you to look at the rest of this which can be found here:

http://supremelaw.org/authors/mcdonald/vol1-8.htm

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