Intelwars retirement Social Security

The True Nature of Social Security Revealed

A friend who opted to take early Social Security benefits at age 62 last late last year was aghast when he recently found out that half of his benefits might be withheld and 85 percent of his benefits might be subject to taxation. An exploration of why these things are true reveals the true nature of Social Security.

Although Social Security was instituted in 1935 as part of Franklin Roosevelt’s New Deal, most Americans are ignorant of its basic operation and true nature.

There are two parts to Social Security, which is technically the Old-Age, Survivors, and Disability Insurance (OASDI) Program. The Old-Age and Survivors Insurance (OASI) program provides monthly benefits to retired workers, families of retired workers, and survivors of deceased workers. The Disability Insurance (DI) program provides monthly benefits to disabled workers and families of disabled workers.

Social Security is supposedly funded by a 12.4 percent payroll tax (split equally between employers and employees) on the first $142,800 of employee income. Self-employed individuals pay the full 12.4 percent, but receive both a reduction in their net earnings from self-employment and a tax deduction equal to 50 percent of the amount of the Social Security tax they paid. One must pay Social Security taxes for a minimum of 40 quarters, or 10 years, to be eligible for benefits, which are figured on the basis of one’s Primary Insurance Amount (PIA) — the average of a worker’s 35 highest years of earnings (up to a particular year’s wage base), adjusted for inflation.

For those born in 1960 or later, the retirement age to receive full benefits is 67. Reduced benefits are available for those who have reached the age of 62. According to the Social Security Administration (SSA),

In the case of early retirement, a benefit is reduced 5/9 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month.

For example, if the number of reduction months is 60 (the maximum number for retirement at 62 when normal retirement age is 67), then the benefit is reduced by 30 percent. This maximum reduction is calculated as 36 months times 5/9 of 1 percent plus 24 months times 5/12 of 1 percent.

In plain English, if your retirement age is 67, then you will receive 70 percent of your benefit if you retire early at age 62, 75 percent at 63, 80 percent at 64, 86 ? percent at 65, and 93 ? percent at 66. My friend knew this. Most Americans realize this. As recently as 2005, 54 percent of women and 50 percent of men opted to sign up for Social Security at age 62. Now it is down to about 31 percent of women and 27 percent of men.

But what many Americans don’t realize is that half of their Social Security benefits might be withheld and a maximum of 85 percent of their benefits might be subject to taxation.

According to the SSA, “If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2021, that limit is $18,960.” And regarding the taxation of benefits,

  • Up to 50% of Social Security benefits are taxed on income from $25,000 to $34,000 for individuals or $32,000 to $44,000 for married couples filing jointly.
  • Up to 85% of benefits are taxable if the income level is over $34,000 for individuals or $44,000 for couples.

(Income is defined as adjusted gross income + nontaxable interest + half of Social Security benefits.)

For those who retire at their full retirement age, there is no limit on how much they can make. Nothing is deducted from Social Security benefits. However, their benefits are still subject to the same rates of taxation.

And then on top of that, thirteen states — Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, West Virginia) — tax Social Security benefits.

Everyone understands that there are reduced benefits for early retirement. If you want the full benefit, then you have to wait until your full retirement age. But what my friend, and no doubt many other Americans, didn’t realize is that the government would also withhold half of his benefits and tax the rest up to 85 percent. Many other Americans do realize this since, according to the SSA, “More than 40 percent of current beneficiaries pay income taxes on part of their benefits.”

Yet the vast majority of Americans still believe that retirees are entitled to Social Security benefits because they paid into the system their entire working lives.

But that couldn’t possibly be true. Not if the government can withhold half of your benefits and tax you up to 85 percent on the rest of them. If Americans are entitled to Social Security benefits because it is “their money,” then it shouldn’t matter how much money they make after retirement. Their income shouldn’t trigger the taxation of their Social Security benefits.

There is, in fact, no connection between Social Security taxes paid and Social Security benefits received. Benefits are calculated by an arbitrary formula that Congress can change at any time. Even worse, there is no contractual right to receive benefits. When Congress passed the Social Security Act of 1935 (H.R.7260), which was signed into law by Roosevelt on August 14, 1935, it put Social Security benefits in Title II and Social Security taxes in Title VIII with no reference in either title to the other.

So if Social Security is not a retirement plan, a trust fund, an annuity, an insurance program, a savings account, or a pension fund, then what is it? The true nature of Social Security is that it is an intergenerational, income-transfer, wealth-redistribution welfare program that takes money from those who work and gives it to those who don’t. And if that is the case, then Social Security — as much as food stamps, Section 8 housing vouchers, cash payments, and every other form of welfare — should be eliminated.

The post The True Nature of Social Security Revealed first appeared on Tenth Amendment Center.

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ROBERT KIYOSAKI: “It’s Not A Free Country Anymore! Pray For The Best-Prepare For The Worst”

This article was contributed by Tom Beck of Portfolio Wealth Global.

I’ve spent considerable time understanding the whole story behind BILL GATES’ CRAZE with vaccines, and his willingness to be DESPISED and DRAGGED THROUGH THE MUD in his pursuit to mitigate diseases with mass-scaled shots, which are highly CONTROVERSIAL.

The whole thing REEKS OF CORRUPTION to the high heavens, but that’s not the biggest SCANDAL in the medical industry. In fact, the president that is MOST CONNECTED to corruption, Richard Nixon, perpetrated (according to a TOP-LEVEL ADVISOR of his) the worst act of shameless public disinformation policy in U.S. history in 1971, the same year that he RUINED the world’s monetary regime by going off the gold standard.

Literally, Richard Nixon CREATED the most PROFITABLE INVESTMENT OPPORTUNITY of my career: GOLD.


As you can see, right now WALL STREET is so convinced that the markets are staging a BEAR MARKET RALLY that it is actually generating a BUY SIGNAL.

Although the majority of the public has no money involved in it, stock market performance is SUPER-IMPORTANT for CONSUMER CONFIDENCE.

Right now, the general public still has a VERY CONFUSED outlook on the future. There are close to 35 million people who have entered the unemployment pool and several large companies are laying off thousands of workers, perhaps indefinitely.

When the MARCH PANIC took place, the public showed why gold is a CRITICAL ASSET to hold.

Physical gold de-coupled with spot prices on the COMEX and many SEIZED THE MOMENT and sold at wild premiums.

Later on, as the panic cooled off, sellers could have bought back physical coins at much lower prices, as premiums shrunk; there’s NO DOUBT in my mind that gold and silver HAVEN’T SAID their LAST WORD.

In fact, Robert Kiyosaki in a TWEET that has now become famous wrote:

“ECONOMY dying. FED incompetent,” Kiyosaki said. “Next BAILOUT trillions in pensions. HOPE fading. Bought more gold silver Bitcoin. GOLD @$1,700. Predict $3000 in 1 year. Silver @ $17. Predict $40 in 5 years. Bitcoin @$9800. Predict $75000 in 3 years. PRAY for the BEST-PREPARE for the WORST.”  

WE JUST interviewed Mr. Kiyosaki and you can CHECK OUT the interview below.

Kiyosaki began the interview saying they (the elitists) used the coronavirus to “coverup the collapse of the shadow banking system.” He adds: “the whole system was designed to bail out the rich. That’s why there’s no financial education at our schools.” Kiyosaki also suggests that he is a little afraid of speaking up right now.  When you cross the global elitists, you are trekking into dangerous territory, as several people have already found out.  “It takes courage to speak out today,” says Kiyosaki.

“The Fed is communism. Anything that’s centrally controlled is socialist or communist. The Fed is run by just a few people…

It’s not a free country anymore…it’s controlled by a cartel.”

Kiyosaki says to bet on gold, silver, and Bitcoin.

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Right now, the focus of is to make sure all readers are as UPDATED as possible on the Covid-19 pandemic. Download our EXCLUSIVE report immediately at:

Time To Prepare For The Unthinkable

The coronavirus has now, effectively, BUTCHERED every person who planned on retiring in the next 5 years. The Dow Jones Industrial Average has entered a bear market. NEVER at any point in American history or in modern European times, have the markets gone from all-time highs to bear market this ABRUPTLY or SUDDENLY.

The damages, DEVASTATION, and ravaging is measured in the trillions of dollars.

The financial and human SORROW and distress is hard to swallow.

The virus itself has not caused the DESTRUCTION; the response to it has, at this point. Put on the scales versus other viruses, the INFLICTED MISERY is far less than even the seasonal flu. The PREEMPTIVE ACTION taken, under the premise that this could BUILD UP and spiral into an INFERNO, has ruined the economy.

Entire countries are FROZEN, economically. The ramifications of this are hard to really explain. This will take years to be studied and learned from. So many mistakes have been made and the financial LOSSES are mounting.


As you can see, in order of magnitude, indices could shed an ADDITIONAL 15%-20%, on top of what has already been MUTILATED.

For 11 years, earnings have grown by 13%/annum and prices have SOARED by 16%/year; this CYCLICAL bull market is TOAST.

No matter which business it happens to be, virtually all stocks have been DECAPITATED and sold off; the markets have been beaten to a pulp.


Don’t compare this to 1987, to 9/11, to 2008 or to the Dot.Com bubble bursting. We’ve NEVER been in a situation where so many industries were ORDERED to STAND DOWN. The decision to shut down the entire country of Italy is MONUMENTAL!

I am 100% certain that by the end of March, it will be DECLARED and publicized that the largest ever package of government aid is underway.

President Trump is experienced at handling crises, going from loved billionaire real estate developer to BANKRUPT and back to billionaire. I’m less concerned with his judgment and much more CONCERNED and apprehensive about the ability of the Democrats and Republicans to bury the hatchet and act in unison, for the sake of the SUFFERING masses. We must all be ready for stock market CLOSURE and even BANK HOLYDAYS.

The worst is not behind us at all. After the World Health Organization has put its seal on this, stating that it’s an official pandemic, the incentive for politicians to implement policies that are above and beyond what’s necessary, is in place. No elected official will want to be blamed for being indifferent to the warnings.

The Dow Jones Industrial Average could test the 20,000 support or even go lower.


Most people haven’t the SLIGHTEST clue how close the credit markets are to FALLING APART. We are testing the limits of liquidity and of TIGHT financial conditions. We are, UNQUESTIONABLY, on the edge.

Italy, for example, has suspended mortgage payments.

There will be more SHOCKINGLY rare announcements to follow and the eyes of the world are all looking at what Washington is doing.

The world’s most powerful nation is eight months away from electing a president, but perhaps eight days away from seeing a DRASTIC interest rate cut and a SWEEPING government stimulus package.

You must be prepared for the possibility that entire regions will turn into GHOST TOWNS!


In Japan, the central bank is essentially nationalizing the stock market. The world’s 3rd largest economy is morphing into a nation of LUDICROUS draconian financial policies.

The coronavirus will be the catalyst of far-reaching and UNORTHODOX strategies, implemented by governments.

On the table are direct loans to small businesses, insurance for salaries, direct helicopter money, payroll tax cuts and I’m sure that, in some circumstances, bank closures are discussed, as well as capital controls.

Still, even if they roll out a blanket coverage plan when large segments of the population are forced to limit their existence to house quarantines, the recovery can’t occur.


Gold is positioned to rally over $2,000/ounce. The potential for layoffs and a reversal of the forward momentum the U.S. economy had enjoyed, up until three weeks ago, is HUGE.

The panic has consumed the minds of the masses.

Each of us has to calculate where he or she stands in all of this. The next week will determine whether we enter a PAINFUL, MISERABLE and unendurable recession or whether things start to stabilize.

I will release an EMERGENCY BRIEFING on Monday, which covers the details of constructing a plan to get us through this like CHAMPIONS.

LP(S) – Virus