Internet earnings reality or myth, Earning money online — Myths and Truth — A Must Read For Everyone!


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One common set of such misinformation involves the history of the Social Security system. Like all taxes, this has never been voluntary.

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From the first days of the program to the present, anyone working on a job covered by Social Security has been obligated to pay their payroll taxes. In the early years of the program, however, only about half the jobs in the economy were covered by Social Security.

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Thus one could work in non-covered employment and not have to pay FICA taxes and of course, one would not be eligible to collect a future Social Security benefit. In that indirect sense, participation in Social Security was voluntary.

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However, if a job was covered, or became covered by subsequent law, then if a person worked at that job, participation in Social Security was mandatory. The text of the law and the tax rate schedule can be found elsewhere on our website.

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Myth 3: President Roosevelt promised that the money internet earnings reality or myth participants elected to put into the program would be deductible from their income for tax purposes each year There was never any provision of law making the Social Security taxes paid by employees deductible for income tax purposes.

Myth 4: President Roosevelt promised that the money the participants paid would be put into the independent "Trust Fund," rather than into the General operating fund, and therefore, would only be used to fund the Social Security Retirement program, and no other Government program The idea here is basically correct. However, this statement is usually joined to a second statement to the effect that this principle was violated by subsequent Administrations.

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However, there has never been any change in the way the Social Security program is financed or the way that Social Security payroll taxes are used by the federal government. From its inception, the Trust Fund has always worked the same way.

Earning money online — Myths and Truth — A Must Read For Everyone!

The Social Security Trust Fund has never been "put into the general fund of the government. Starting in due to action by the Johnson Administration in the transactions to the Trust Fund were included in what is known as the "unified budget.

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This is sometimes described by saying that the Social Security Trust Funds are "on-budget. But whether the Trust Funds are "on-budget" or "off-budget" is primarily a question of accounting practices--it has no affect on the actual operations of the Trust Fund itself.

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Myth 5: President Roosevelt promised that the annuity payments to the retirees would never be taxed as income Originally, Social Security benefits were not taxable income. This was not, however, a provision of the law, nor anything that President Roosevelt did or could have "promised.

And of course, Social Security is anything but simple to understand. Separating fact from fiction is critical. Believing these myths can prove dangerous to your financial well being — and even your ability to afford your retirement — because they can screw up the way you plan and prepare for the future.

The Treasury rulings can be found elsewhere on our website. In Congress changed the law by specifically authorizing the taxation of Social Security benefits.

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Internet earnings reality or myth was part of the Amendments, and this law overrode the earlier administrative rulings from the Treasury Department. A detailed explanation of the Amendments can be found elsewhere on our website.

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Historical Links.