Social Security: Moral Right But Not Legal One
This opinion piece by Mike Plunkett explains a little known but important Social Security case of Flemming v. Nestor. A main point of the majority’s opinion in the case is frequently noted as something of the order that “the government has no legal, contractual obligation to pay back hard-earned Social Security contributions.” Sadly, the line is often used to scare seniors into making contributions to support legislation to “protect” Social Security that does not exist. The Court’s opinion takes one through the case of a Bulgarian immigrant deported from the country. He subsequently sued to get back his contributions. The Court made it clear that one’s contributions do not create a contract, as the payroll taxes deducted from one’s earnings each week are immediately sent out to beneficiaries. It is worth noting, that once one starts collecting Social Security today, all taxes paid plus a nominal rate of interest will be received in about 5-6 years, making Social Security a “good deal”. This “good deal” is also creating an insolvency issue given changing demographics. Read more about this Supreme Court case here.
The Association of Mature American Citizens (AMAC) advocates for a strengthening of Social Security and has developed a bipartisan compromise bill, titled “The Social Security Guarantee Act,” taking selected portions of bills introduced by Rep. Sam Johnson (R-TX) and Rep. John Larson (D-CT) and merging them with the Association’s original legislative framework to create the new Act. AMAC is resolute in its mission to get the attention of lawmakers in DC, meeting with a great many congressional offices and their legislative staffs over the past several years. Learn more about AMAC’s Social Security Guarantee here…
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