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Social Security Facts: Separating Myth from Reality

“HISTORY LESSON ON YOUR SOCIAL SECURITY CARD: Just in case some of you young whippersnappers (& some older ones) didn’t know this. It’s easy to check out, if you don’t believe it. Be sure and show it to your family and friends. They need a little history lesson on what’s what and it doesn’t matter whether you are Democrat or Republican. Facts are FACTS. Up until the 1980's, Social Security cards expressly stated the number and card were not to be used for identification purposes. Since nearly everyone in the United States now has a number, it became convenient to use it anyway and the "NOT FOR IDENTIFICATION" message was removed. Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program. His promises are in black, with updates in brackets. 1.) That participation in the Program would be completely voluntary [No longer voluntary], 2.) That the participants would only have to pay 1% of the first $1,400 of their annual Incomes into the Program [Now 7.65% on the first $90,000, and 15% on the first $90,000 if you’re self-employed], 3.) That the money the participants elected to put into the Program would be deductible from their income for tax purposes each year [No longer tax deductible] 4.) That the money the participants 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 [Under Johnson the money was moved to the General Fund and spent] 5.) That the annuity payments to the retirees would never be taxed as income [Under Clinton & Gore up to 85% of your Social Security can be taxed]. Since many of us have paid into FICA for years and are now receiving a Social Security check every month — and then finding that we are getting taxed on 85% of the money we paid to the Federal government to ‘put away’ — you may be interested in the following. Q: Which Political Party took Social Security from the independent ‘Trust Fund’ and put it into the general fund so that Congress could spend it? A: It was Lyndon Johnson and the democratically controlled House and Senate. Q: Which Political Party eliminated the income tax deduction for Social Security (FICA) withholding? A: The Democratic Party. Q: Which Political Party started taxing Social Security annuities? A: The Democratic Party, with Al Gore casting the ‘tie-breaking’ deciding vote as President of the Senate, while he was Vice President of the US AND MY FAVORITE: Q: Which Political Party decided to start giving annuity payments to immigrants? A: That’s right! Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it! Now, after violating the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away! And the worst part about it is uninformed citizens believe it! If enough people receive this, maybe a seed of awareness will be planted and maybe changes will evolve. Maybe not, though. Some Democrats are awfully sure of what isn’t so but it’s worth a try.”
Mostly false
Confidence: High Checked on June 13, 2026

Summary

The claim that FDR promised a voluntary program, a 1 % tax, and a tax‑deductible contribution is incorrect; the original law prohibited a deduction. The Social Security trust fund has never been transferred to the general fund, and its surpluses were only counted in the deficit for a period, not spent. Partial taxation of benefits began in the 1980s under a bipartisan bill, not as a Democratic invention, and immigrants have been eligible for benefits only when they meet work‑credit requirements, a rule that predates Carter. The “NOT FOR IDENTIFICATION” wording on cards did appear on early cards but was removed later, though the statement linking this to a partisan agenda is misleading.

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Sources 60 searched

ssa.gov
  • Social Security History

    Myth 3: President Roosevelt promised ... Security taxes paid by employees deductible for income tax purposes. In fact, the 1935 law expressly forbid this idea, in Section 803 of Title VIII....

  • Social Security Special Collections: Public Information Materials

    This 1941 poster was a reminder of the mobilization of labor in support of the war effort, and of the fact that the U.S. Employment Service was part of the Social Security Board from July 1939 when it was transferred from the Department of Labor, to August 1949 when it was transferred back to Labor. SSA History Archives. ... This 1947 poster emphasizes the value of the Social Security card.

  • Social Security History

    Appendix D: DESCRIPTION OF TYPES OF SOCIAL SECURITY CARDS · Prior to May 15, 1978, all cards were issued based on information alleged without any evidence--all were unrestricted cards.

snopes.com
  • FACT CHECK: Social Security 'Fun Facts'

    Historically, Social Security hasn't always been off-budget, a fact that continues to be a source of confusion. Between 1969 and 1990, changes in the law permitted trust fund surpluses to be counted as assets when computing the federal deficit (which had the desired effect of making the deficit appear smaller than it actually was). This has not been the case since the passage of the Budget Enforcement Act of 1990, historian Larry DeWitt writes, but politicians still use the informal convention of including trust fund surpluses in discussions about the budget when it suits their purposes:

infinitebanking.org
thejacksonpress.org
lanesboroamericanlegion.org
  • History of Social Security - American Legion 2

    Be sure and show it to your family ... you are Democrat or Republican. Facts are Facts. Social Security Cards up until the 1980s expressly stated the number and card were not to be used for identification purposes....

idw.community
creators.com
  • The SSN: A History Lesson, by Tom Margenau | Creators Syndicate

    When Social Security numbers were first issued in 1936, the SSA did not yet have a network of field offices, so the agency contracted with the U.S. Postal Service to distribute and assign the first batch of Social Security numbers through its 45,000 local post offices around the country. Of these 45,000 post offices, 1,074 were also designated as "typing centers" where the cards themselves were prepared. Because of that, the best that SSA historians can say with certainty is that the first SSN was issued sometime in mid-November 1936 from one of those 1,074 post offices to someone whose identity and SSN are unknown.

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