The History of Social Security in the USA

 

The Social Security Act was signed by FDR on 8/14/35. Taxes were collected for the first time in January 1937 and the first one-time, lump-sum payments were made that same month. Regular ongoing monthly benefits started in January 1940. Social Security number (SSN) were never intended to be a form of identification. It was initially created to track the earnings history of workers for Social Security purposes. While the SSN has become widely used for other purposes, including identification, it was not designed for that purpose. Social Security benefits were not originally designed to be taxed. Initially, they were considered a form of government assistance and were excluded from federal income taxes. Social Security benefits have been subject to federal income tax since 1984. The social security tax was signed by President Reagan into law on April 20, 1983. Initially, up to 50% of benefits could be taxed for those with incomes exceeding certain thresholds. Later, in 1993, the taxability was expanded to include up to 85% of benefits for higher income earners by President Clinton (the president some claim had the most documented assasination attemps).