Beneficiary Designation Under Group Life Insurance Policy American United Life Insur: Fill & Download for Free

What Is No Medical Exam Life Insurance?No medical exam policies are exactly what their name implies: they don’t require you to take a medical exam like traditional life insurance policies do. But, they provide the same guaranteed coverage as those that do require a medical exam. However, no medical or simplified issue policies are typically limited to lower coverage amounts. These policies are typically still fully underwritten with a complete medical questionnaire. Your background review could include the following:Pharmacy report, which lists all medications you’ve been prescribed over the last 5–10 yearsMotor Vehicle Department reportMedical Insurance Bureau report (to see if you’ve applied for or have been denied life insurance in the past)Credit history (only a few insurance companies check this)No Medical Exam Companies In DetailAbout 5 Star Life Insurance5Star Life Insurance Company (5Star Life), a related enterprise of the Armed Forces Benefit Association (AFBA), is a growing provider of supplemental and voluntary life insurance to the worksite/group markets.AFBA was established in 1947 with the support of the General of the Army, Dwight D. Eisenhower, to ease the strain on military members and their families during wartime. At that time, service members could not purchase life insurance that would pay a death benefit if the member was killed in a war zone.Founded in 1996, today 5Star Life insures over 800,000 lives with $41.8B insurance in force.True Blue CommentsThis product is sold like a group policy. You join the Health Depot Association to gain access to the product. The premium is guaranteed to stay level until you reach 100 years of age, though the coverage amount may decrease after 10 years. The policy is very easy to obtain with only a few health questions. This is a great product for individuals who want coverage quickly and want to avoid questions about smoking, diabetes, and weight.Product FeaturesFamily Protection PlanAvailable for ages 18 through 70Coverage amounts from $10,000 to $150,000Not available in NJ, NY, VT, WANo height/weight limitsNo smoking or diabetes questionsIncludes membership to the Health Depot AssociationIncludes a voice signatureOnly a few health questions to qualifyIf you’ve been declined by another life carrier, you are ineligibleCoverage amount is guaranteed for 10 years; may decrease thereafterMust be able to work at the time of the application: You are able to work and perform the normal activities of a person of like age and gender, and you are not confined to a hospital, at home or elsewhere due to injury or sickness on the date you sign this application.Included BenefitsEmergency Burial BenefitWithin 24 hours after receiving notice of an insured’s death, an emergency death benefit of the lesser of 50% of the coverage amount or $15,000 will be mailed to the insured’s beneficiary, unless the death is within the two-year contestability period and/or under investigation.Terminal IllnessThis plan pays the insured 30% (25% in Connecticut and Michigan) of the policy coverage amount in a lump sum upon the occurrence of a terminal condition that will result in a limited life span of less than 12 months.Optional BenefitsChildren & Grandchildren PlanPolicies can also be purchased for children and grandchildren, ages newborn through 23 years, for $1.15/week for a $10,000 policy or $2.30/week for a $20,000 policy.Family Protection Plan BrochureHealth Depot Association BrochureAbout American NationalAmerican National Insurance Company was founded in 1905 and has evolved into a well-respected member of the life insurance industry, offering both longevity and stability to its policyholders.Headquartered in Galveston, Texas, American National has more than 3,000 employees in offices in Galveston and League City, Texas; Springfield, Missouri; and Glenmont, New York. American National’s network of agents spans all 50 states and Puerto Rico, and provides service to more than 5 million policyholders.True Blue CommentsThe Signature Term product is a great product that offers “living benefits”—benefits you can use while still alive. The product is competitively priced, and the underwriters at American National do an amazing job of offering insurance to people with a medical history. The application is thorough and takes about 30 minutes to complete; the company may request medical records from your physicians in order to make a decision.Product FeaturesANICO Signature Term ExpressAvailable for face amounts up to $250,000Term lengths: 10, 15, 20, and 30 yearsNon-med underwriting from $50,000 to $250,000Includes accelerated benefit riders for terminal illness, chronic illness, and critical illnessUnderwriting Express facilitates 48-72 hour turnaround on approvalsRates are guaranteed to remain the same during the term lengthStandard and substandard classes onlyAvailable for ages 18 to 65 yearsElectronic applicationConversion credits available through 5th policy yearIncluded BenefitsAccelerated Benefit Rider for Terminal IllnessYou may have access to part of the death benefit of the policy when an illness or chronic condition is expected to result in death within 12 to 24 months, depending on state limitations.Accelerated Benefit Rider for Chronic IllnessYou may have access to part of the death benefit of the policy when unable to perform two out of six activities of daily living (bathing, continence, dressing, eating, toileting, or transferring) or there is cognitive impairment.Accelerated Benefit Rider for Critical IllnessYou may have access to part of the death benefit of the policy when diagnosed with any of a list of 16 critical illnesses.Optional BenefitsChildren’s Term RiderThis rider insures each child approved when the policy is issued and any subsequent children born or adopted while the rider is in force. The coverage expires on each child when he or she attains age 25, at which time the coverage may be converted to a permanent plan of insurance.Disability Waiver of PremiumYou may add an optional disability of premium rider at the time you apply for your policy, though it may not be available in all states.Signature Term BrochureBenefits and Riders BrochureAbout AssurityAssurity has long lived its mission of helping people through difficult times, with a heritage dating back to 1890.Being a mutual organization is important. It means Assurity has no shareholders or publicly traded stock, and that Assurity’s policyholders share in the ownership of the company. Ultimately, it means Assurity is in business to serve the interests of its policyholders.Assurity provides life insurance, disability and critical illness insurance, and voluntary employee benefits through independent brokers nationwide.True Blue CommentsAssurity’s NonMed 350 is a good term product from an excellent company. The application is taken over the phone and is signed digitally. The underwriting can take 2-4 weeks, and medical records may be requested in order to make a decision. The product is competitively priced for people who are in excellent health.Product FeaturesNonMed Term 350Issue ages 18-65 yearsFace amounts $50,000 to $350,000No medical exam. Medical records may be requested from doctorsThe policy is convertible to a permanent policy prior to two years before the end of the term period, or when the insured reaches the age of 65Term periods: 10, 15, 20, and 30 yearsApplication can be completed in 20-30 minutesApplications can be signed digitallyPolicies typically take 2-4 weeks to issueIncluded BenefitsAccelerated Death BenefitThis rider provides an optional accelerated payment of life insurance proceeds to an insured who is terminally ill or expected to live in a nursing home until death.The eligible life insurance proceeds are equal to a percentage of the policy face amount or up to a total of $250,000 from all policies and riders on the insured issued by this company.This rider will be attached only at the time of issue if approved in your state. There is no premium charged for this benefit.Conversion OptionLifeScape NonMed Term 350 is convertible during the conversion period, which begins on the issue date of the policy and ends on the earlier of:one year prior to the end of the level term period for the 10-year plan, ortwo years prior to the end of the level term period for the 15-, 20-, and 30-year plans, orthe policy anniversary on which the insured has attained age 65If the entire policy is converted, the policyowner will receive a conversion credit equal to the base premium paid during the first policy year. The conversion credit will be prorated for partial conversions.Optional BenefitsAccident-only Disability Income Benefit RiderProvides a monthly benefit if the insured becomes totally disabled as the result of a covered accident.“Total disability” is a condition resulting from an accidental injury and independent of all other causes that keep the insured from doing the important, substantial, and material duties of his or her own occupation and requires a physician’s care unless the insured has reached the maximum point of recovery.Children’s Term Insurance RiderProvides level-term insurance to age 25 on the insured’s children who are listed on the original application and children born to or adopted by the insured while the policy and this rider are in force.Critical Illness Benefit RiderAvailable in lump-sum benefit amounts from $20,000 to $100,000 and may not exceed the term face amount for the base insured or other insured. Assurity will pay a benefit if an insured person receives a first-ever diagnosis or procedure for one of the specified critical illnesses listed on the rider.NonMed Term 350 BrochureAbout FidelityFidelity Life Association was founded in 1896 as Mystic Workers of the World, a fraternal benefit society designed to provide financial protection for the growing middle class of the Midwest and Northern states.As Middle America grew, so did the organization. By 1915, life insurance in force reached $100 million. In 1929, the organization increased its assets by nearly 100 percent during the worst decade in U.S. financial history. Though it remained a fraternal benefit society, the organization changed its name to Fidelity Life Association in 1930. For the next few decades, Fidelity’s assets and the number of customers it served continued to grow.Today, Fidelity Life is a well-capitalized life insurance company licensed to do business in all states except Wyoming and New York, with over $26 billion of life insurance in force. Fidelity is organized as a stock life insurance company subsidiary of Lifestory Interactive, with Members Mutual Holding Company as its ultimate parent. This organizational relationship provides Fidelity Life greater operational flexibility and access to capital. The company has a risk-based capital ratio that ranks in the top 10 percent of the U.S. life insurance industry and is rated A- (Excellent) by A.M. Best.True Blue CommentsThe Fidelity Rapid Term Express policies are very easy for both customers and agents to complete. Because the underwriting process does not include requesting medical records, policies are issued/approved within 48 hours.Product FeaturesRapid Decision ExpressIssue ages: 18-65 yearsFace amounts: $25,000 to $250,000No medical exam. No blood test, no urine test, no requests for medical recordsMIB, MVD, and pharmacy records are checkedTerm periods: 10, 15, 20, and 30 yearsApplication can be completed in 10-15 minutesApplications can be signed digitallyOnly Standard health class available. Standard non-nicotine, Standard nicotineApprovals within 24-48 hoursIncluded BenefitsAccelerated Death BenefitAdvances up to 50% of the death benefit upon proof that the insured has a life expectancy of 12 months or less. Payable 2 years after issue. Varies by state.Optional BenefitsDependent Child RiderOffers children of the primary insured (aged 20 to 60 years) who are 15 days to 18 years old coverage from $5,000 to $25,000. Coverage ceases when the child reaches age 23 or when the primary insured reaches age 65, or the policy terminates, whichever comes first.Accidental Death Benefit (ADB) RiderPays a benefit in the event of accidental death. It’s available at issue ages 20-65, in benefit amounts up to $250,000, and expires at age 80.Rapid Term Express BrochureAbout North AmericanAs one of the leading providers of life insurance and annuities in the United States, North American has continuously fulfilled commitments to its customers since 1886. Families and businesses alike have counted on North American to be there for them during their most challenging times, and to help prepare them for the good times ahead. North American has been doing this for nearly 130 years through outstanding customer service, competitive insurance and retirement solutions, and a foundation of financial strength. This unwavering commitment helps North American’s customers focus on the things that matter most to them.True Blue CommentsThe North American LifeVue product is unique in the insurance industry. North American offers a guaranteed level product that is taken over the phone via a fully digital application. As soon as the application has been completed over the phone, an underwriting decision is made then and there. Customers can digitally sign the policy and receive the official policy via digital download. In addition to being instant issue, the LifeVue product is one of the most competitively priced no medical products on the market. It’s one of the best products we have from an A++ rated company.Product FeaturesNorth American LifeVueAvailable for ages 18 through 50Term lengths: 15, 20, and 30 yearsCoverage amounts: $50,000 up to $500,000For rates, age is determined by the nearest birthdayTobacco users can qualifyAvailable in all states except New York and CaliforniaApplication is taken over the phoneInstant underwriting decisions; policies are issued the same dayPolicy delivered electronically via emailThis policy’s underwriting checks background information and financial history via public recordsIncluded BenefitsAccelerated Death BenefitYou may elect to receive advancement of the policy’s death benefit when the insured has a terminal illness while the policy is in effect. An insured qualifies as being terminally ill if a physician/medical practitioner has certified that the insured’s life expectancy is 24 months or less. The amount available for the accelerated death benefit varies by state and can be up to 75% of the death benefit.Conversion OptionThe LifeVue term product is convertible to a whole life policy in years 1-5.North American LifeVue BrochureAbout Phoenix LifeFounded in 1851, The Phoenix Companies, Inc. offers annuities and life insurance designed to meet income and protection needs of families and individuals planning for or living in retirement. Products are available primarily through independent agents and financial professionals.Phoenix’s life insurance products offer a spectrum of death benefit protection, living benefits in case of critical, chronic, or terminal illness, and unique options for leaving a legacy to young beneficiaries, such as college tuition assistance and annual birthday gifts. Cash value accumulation features provide flexibility to meet a variety of needs. The company’s long history of product innovation drives ongoing development of competitive offerings for today’s marketplace.True Blue CommentsPhoenix’s Simplified Issue Safe Harbor Term product is arguably the best-priced no exam term life product when you factor in the living benefits that are included. The application is fully digital, and the Express product is issued in just 24 hours. The product is a great fit for many people.Product FeaturesSI – Safe Harbor TermAvailable for ages 18 through 80 for 10-year termTerm lengths: 10, 15, 20, and 30 yearsCoverage amounts: $50,000 up to $500,000Included living benefits for critical illness, chronic illness, and terminal illnessThe Safe Harbor Term product typically takes 7-14 days to issue. The Safe Harbor Term Express product is issued the same day (Standard to table 4 rating health class)The 20-year term product is convertible to a permanent policy within the first 10 yearsApplication taken over the phone (takes about 25 minutes) and signed digitallyMVD, MIB, and pharmacy records are checked during underwriting, and medical records may be requested. No medical records requested for the Express productIncluded BenefitsChronic Illness BenefitGives you the option to receive a portion of your death benefit early if you are certified by a physician as being unable to perform at least two activities of daily living (bathing, continence, dressing, eating, toileting, or transferring), or if you require substantial supervision due to severe cognitive impairment.Critical Illness BenefitGives you the option to receive a portion of your death benefit early if you are diagnosed with a heart attack or stroke, cancer, renal failure, or ALS, or need a major organ transplant.Terminal Illness BenefitGives you the option to receive 95% of your death benefit early if you are diagnosed as terminally ill with a life expectancy of one year or less.Optional BenefitsUnemployment RiderWaives 6 months’ worth of premium in the event you become unemployed for at least 4 weeks.Automatically included, at no additional cost, for issue ages 18-60You must exercise this rider within 90 days of qualificationYou must be receiving state or federal unemployment benefits to qualifyWaiting period of 24 months from date of issue appliesOne-time electionTerminates at age 65 and at end of term periodAccidental Death Benefit RiderPays an additional lump sum death benefit upon insured’s death if such death occurs by covered accident.Additional premium requiredMust be elected at issueInsured must be under age 65 at issueTerminates at insured’s age 70Maximum benefit of $250,000Phoenix Safe Harbor Term BrochureAbout SagicorSagicor Life Insurance Company is a full-service life insurance company that helps clients make wise financial decisions today to ensure that they’re protected tomorrow. Licensed in 45 states and the District of Columbia, Sagicor is rated A- (Excellent) by A.M. Best (4th-best out of 16 possible ratings). This rating is based on Sagicor’s financial strength and ability to meet its ongoing obligations. Sagicor is a wholly owned subsidiary of Sagicor Financial Corporation, one of the oldest insurance groups in the Americas, with operations in 22 countries, mainly in the United States, Latin America, and the Caribbean. Sagicor is committed to offering customers world-class service with integrity and value.True Blue CommentsSagicor’s Sage Term product is the leader in the no medical exam life insurance market. The application can be taken over the phone in about 20 minutes, or you can complete most of the application online.You can sign the application digitally, and your policy can be delivered digitally when it is issued.The Sage Term product is convertible to the Sage No Lapse Universal Life product, which is one of the best permanent policies in the market. It can be converted at any time during the guaranteed coverage period.Product FeaturesSagicor Simplified Issue Term Life InsuranceIssue age: 18-65 yearsFace amounts: $50,000 to $500,000Preferred non-tobacco, Standard non-tobacco, Preferred tobacco, Standard tobacco and Substandard health classesNo medical exams, body fluids or APS (attending physician statements)Application can be completed in 20-25 minutesPolicies issued within 1-7 business daysIncluded BenefitsAccelerated Benefit Insurance RiderIncluded at no additional cost, the accelerated benefit insurance rider will help cover medical costs or nursing home care by allowing you to use a portion of the death benefit in the event of a terminal condition diagnosis or confinement to a nursing home facility. The benefit received is the lesser of 50% of the policy face amount or $300,000.Nursing Home ConfinementAccelerated benefit will be paid if the covered person has been continuously confined to a nursing home facility for 180 days and is expected to remain confined until his or her death. Monthly payments will be made to the owner.Conversion OptionConversion to a permanent life policy is available prior to policy anniversary following the insured’s 70th birthday.Spousal DiscountWhen both spouses purchase policies, one of the policies receives a $35 discount.Optional BenefitsChildren’s Term RiderProvides term life insurance protection for your children, age 15 days to 19 years, and remains in force for each child until the earlier of age 25 or marriage. If eligible, at the end of the term period the benefit may be converted to a qualified permanent life insurance policy for up to five times the original amount, regardless of the child’s current health. (Available on fully underwritten applications only.)Accidental Death Benefit RiderIf the insured dies due to an accident, as defined in this rider, beneficiaries will receive an additional death benefit.Waiver of Premium RiderWaives the premium payments if the primary insured becomes totally disabled for at least six months. If the total disability ceases, simply resume making premium payments.Sage Term BrochureAbout TransamericaIn 1928, Giannini merged with Bank of America, and in 1930 acquired Occidental Life Insurance Company through Transamerica Corporation. The banking and life insurance businesses separated in 1956, with the latter taking the Transamerica name. In 1972, the now iconic Transamerica pyramid claimed its place in the San Francisco skyline.Transamerica is one of the world’s leading financial services companies, providing insurance, investments, and more to 27 million customers.True Blue CommentsThe Transamerica Trendsetter LB (living benefits) product is one of the best products in the industry. The application is longer than others, and some questions may surprise you, but the quality of the product is worth it.Product FeaturesTrendsetter LBIssue ages: 18-60 yearsFace amounts: $25,000 to $249,999No medical exam. Medical records may be requested from doctorsTerm periods: 10, 15, 20, 25, and 30 yearsAutomatically included riders: Chronic Illness, Critical Illness, and Terminal IllnessApplication can be completed in 30-40 minutes by phonePolicies can take up to 30 business days to be approvedIncluded BenefitsChronic IllnessFor the purpose of this rider, a chronic illness is defined as being unable to perform two of six Activities of Daily Living (bathing, continence, dressing, eating, toileting, and transferring) without assistance, or being severely cognitively impaired for a period of at least 90 days.Critical IllnessFor this rider, you may be considered critically ill if you’ve been diagnosed with a health condition such as a heart attack, a stroke, cancer, end-stage renal failure, ALS, blindness or paralysis resulting from specific underlying conditions, or you require a major organ transplant.If you live in California, critically ill means you’ve been diagnosed after the rider date with a medical condition that would, in the absence of treatment, result in your death within 12 months.Terminal IllnessFor this rider, you are considered to be terminally ill if you have a life expectancy of 12 months or less.Optional BenefitsChildren’s Insurance RiderProvides insurance on all children of the insured. Each unit is equal to $1,000 of level term insurance. Coverage on each child expires on the child’s 25th birthday. The rider terminates at the anniversary when the insured is age 65.Monthly Disability Income RiderProvides a monthly income for up to 24 months (2 years), if the rider insured is totally disabled and qualifies. Total disability means the inability of the rider insured to perform the substantial and material duties of his or her regular occupation for which he or she is reasonably suited by education, training, or experience.Income Protection OptionProvides a settlement option that is fixed via a Fixed Settlement Endorsement.Waiver of Premium Benefit RiderIn the event of total disability, before the policy anniversary nearest the insured’s age 60, and after the total disability has continued uninterrupted for a waiting period of no less than six months, premiums will be waived retroactively from the beginning of the disability. Premiums will continue to be waived for the duration of the total disability.Among other reasons, premiums will not be waived if the disability results directly or indirectly from intentionally self-inflicted injury(ies), from participation in insurrection, or from war or any act of war.Accident Indemnity RiderPays an additional death benefit if the insured dies as a result of an accidental bodily injury. Double the additional amount is payable if the accidental bodily injury occurs while the insured is a fare-paying passenger on a common carrier. Death must occur within 90 days from the accident and before the insured is age 70. The insured cannot be engaged in a hazardous occupation, as determined by the company.Trendsetter LB BrochureAbout United of OmahaFor more than a century, Mutual of Omaha Insurance Company (Mutual of Omaha) has been there to keep its promises to customers. The company is strong, stable, secure, and ready to meet your insurance and financial needs.Through good times and bad, you can have confidence in Mutual of Omaha.A subsidiary of mutual insurance giant Mutual of Omaha, United of Omaha Life Insurance offers a range of protection and retirement products to employer groups and individuals, including life insurance, fixed annuities, and related financial products and services in all states but New York (where sister firm Companion Life Insurance Company of New York operates).True Blue CommentsTerm Life Express is an amazing product that provides more living benefits than any other policy included at no cost. The product is only offered at the standard/regular health class and has one of the most liberal build charts in the industry. United/Mutual of Omaha is a great company with extremely high ethical standards. Most policies are issued either immediately or within 10 days.Product FeaturesTerm Life ExpressIssue ages: 18-65 yearsFace amounts: $25,000 to $300,000, ages 18-50; $25,000 to $250,000, ages 51-65No medical exam. Medical records may be requested from doctorsStandard non-tobacco and Standard tobacco health classesTerm periods: 10, 15, 20, and 30 yearsAutomatically included riders: Terminal Illness, Chronic Illness, and Critical Illness, Residential Damage, Waiver of Premium for Unemployment, Common Carrier Death Benefit ProvisionApplication can be completed in 20-25 minutes by phoneA policy with a 5-year premium guarantee is available, but we do not sell it. We only sell the policies that are guaranteed level for the full termPolicies typically take 1-10 days to issueIncluded BenefitsChronic Illness RiderProvides an accelerated death benefit if the insured is certified by a physician within the last 12 months as unable to perform two of six Activities of Daily Living (ADLs) for 90 consecutive days, or requires substantial supervision to protect himself or herself from threats to health and safety due to severe cognitive impairment.Terminal Illness RiderProvides an accelerated death benefit if the insured provides evidence that his or her life expectancy is 12 months or less.Critical Illness RiderProvides an accelerated death benefit if the insured has been certified by a physician as having one or more of the following conditions within the last 12 months: ALS, kidney failure, life-threatening cancer, major organ failure, heart attack, or stroke.Residential Damage RiderIf the insured’s primary residence sustains $25,000 or more of damage, the premium of the base policy and all riders are waived for one six-month period.Waiver of Premium for Unemployment RiderIn the event of qualifying unemployment, United of Omaha waives the premium for the base plan and all riders for one six-month period.Common Carrier Death Benefit ProvisionIf the insured dies in an accident while he or she is a fare-paying passenger on a common carrier (e.g., airplane, train, or bus), this rider provides an additional death benefit equal to 100 percent of the original face amount or $250,000, whichever is less.Optional BenefitsDisability Income RiderWith this rider, the insured can apply (at issue) for a maximum monthly disability income benefit equal to the lesser of:1.5 percent of the face amount at issue, or$3,000 per month, or60 percent of his or her monthly gross incomeThe insured can apply for either an 18- or 30-month benefit. The monthly income amount and the benefit period cannot be changed after issue. The elimination period is 90 days.** In Maryland, there’s a 120-day elimination period.Availability may vary by product.Disability Waiver of Premium RiderIf the insured becomes disabled and is unable to work, the premium for the base policy and all riders is waived through the level period. The elimination period is 90 days.** This benefit continues as long as the insured is disabled. If the insured does not become disabled prior to the earlier of the end of the level period or age 60, the benefit is no longer available.**In Maryland, there’s a 120-day elimination period.Accidental Death Benefit (ADB) RiderThis rider can only be added at issue, and the issue age of the base insured must be 18 to 55. The rider terminates and the premiums stop at the earlier of: the end of the level period, or the anniversary date of the policy following the insured reaching age 65. The benefit amounts available are based on the issue age of the base insured and are as follows:Minimum ADB amount: $10,000Maximum ADB amount: issue ages 18-25: $100,000; issue ages 26-55: $250,000 (or the face amount, if less)Dependent Children’s RiderCan be added at issue only and is available for the base insured only. Face amounts are $5,000 and $10,000. The rider terminates and the premiums stop at the earlier of: the anniversary date after the insured reaches age 65, when the youngest child reaches age 23, or when the base policy terminates.Accident Indemnity RiderPays an additional death benefit if the insured dies as a result of an accidental bodily injury. Double the additional amount is payable if the accidental bodily injury occurs while the insured is a fare-paying passenger on a common carrier. Death must occur within 90 days from the accident and before the insured is age 70. The insured cannot be engaged in a hazardous occupation, as determined by the company.

Social Security won't stop writing checks, even if the trust fund runs out, unless the US Government fails. But the need for reform is real and very urgent. The problem is that most reforms talk about raising taxes or decreasing benefits, and doing either is political suicide for politicians who would vote for such a plan.What we call Social Security was designed to save up your own money for you by involuntarily taxing you, collect interest on the money that was raised through the tax, and then pay you benefits when you are eligible due to age, death of a parent or spouse, or disability. The Federal Insurance Contributions Act (FICA) withholding tax you pay goes to a trust fund formally known as the Old Age, Survivor and Disability Insurance fund, or OASDI. Ideally, the money coming in would build up a huge fund, and the money going out would be in proportion to what the beneficiary put in. FICA taxes are always coming into the fund, but we're drawing it down way faster than we're building it. So at the time we "run out of money", we'd merely have to have the outgoing checks start matching the incoming payroll tax revenue, which might mean a sudden 20% or larger drop in benefits. The Simpson-Bowles Report of the National Commission on Fiscal Responsibility and Reform had a large section on Social Security, and a chart that showed this effect, was projected to happen in 2037. Now, only three years later, the new guess might be 2033.The thing is, any date you hear is going to be based on a whole lot of assumptions. I don't know how many grandchildren I'm going to have, much less whether they'll make a lot of money, and neither do the trustees of the Old Age, Survivor and Disability Insurance trust fund, as it is formally called. They often make optimistic assumptions about how the economy is going to fare in the future. So 2033 and a 22% drop is just a plausible guess (see The 2013 OASDI Trustees Report)Make no mistake -- this is the sort of problem that only gets bigger the longer we ignore it. Many criticized Republicans for wasting time discussing Big Bird and Planned Parenthood in 2011, because, as they correctly noted, the real money is in Social Security, Medicare, Medicaid, and Defense. I think some are dismayed that the sights are now trained on Social Security after all. Now is the time to begin reform, because we need to give fair warning to future retirees about their anticipated benefits. And here's a hint: they won't be what they are now for everyone - the math doesn't work.Originally, Social Security was passed because Americans were becoming more and more likely to live to an age where they were physically not able to earn an income. It covered survivors partly because women live longer than men and they were likely to become widowed housewives without a job history or other skill that was valued highly. It covered children, who would otherwise have fallen into terrible poverty, and it covered those who were injured or disabled and were unable to continue working in factories, fields and other typically physical jobs.Republicans tend to trust people to take care of themselves. If you are saving money for your retirement, you want to have control of your own money as you save it. If you invested poorly, you'd become poor, and there would be other government programs that would take care of you (though not comfortably). The 2008 downturn virtually killed this idea, because it's absolutely a fact that many people lost a big part of their private retirement funds if they sold their stocks at the bottom of the market. On the other hand, nobody lost money they put into Treasury bills, which is what the wiser investors did as they approached retirement. Nobody lost Social Security payments in this crash, because the government can change the law at will, raising or lowering taxes, changing benefits (as they did in 1983), or even injecting general income tax revenue into the fund. That would be one way to "rescue" Social Security, but here's a little irony: Social Security has had to rescue the rest of the budget, in the sense that a trillion and a half dollars of the fund has been loaned to the general fund. Talk about rearranging the deck chairs...Discussions about the Social Security trust fund often focus on factors that I'll discuss below, including tax rates, demographics, employment levels and life expectancy. But I personally think the much more basic question we're not asking often enough is where the program is most needed, and where it isn't needed. In my opinion the role of government should be to help the disadvantaged and those who are most in need, and in many cases that's not what Social Security does. It's a great example of a well-intentioned idea that becomes a massive one-size-fits-all government program that solves problems that don't exist, and creates new and bigger ones. It's a major feature of our safety net, needless to say. It consumes a whopping 7% of our GDP. Supposedly, it is a savings program (not a need-based program) that serves everyone who works, as well as their families, when they reach retirement age or if they are disabled. Who could oppose such a thing? It does a lot of good, so it must be a good program, right? I have a different take on it entirely. It should be restructured to help only the people who need it, to the extent they need it, and those who can look after themselves should do so. This is a Republican idea that was part of the Republicans' Path for Prosperity budget for fiscal year 2012. This "Ryan Plan" was met with great protest by those who like a big federal program for the sake of having big federal programs. In reality, means testing was in the Simpson Bowles report. And in fact, to go back to the beginning of the history of the entire program, Franklin Roosevelt himself said "We shall make the most lasting progress if we recognize that Social Security can furnish only a base upon which each one of our citizens may build his individual security through his own individual efforts."In the end, I think we have two choices. We can continue to think of Social Security as an imposed savings plan that benefits anyone who pays into it, or we can treat it more like other government programs that are directed to the needy. The problem with the first idea is that it's a really lousy investment for most people, as it turns out. And both the fund and the tax contain the word "insurance", suggesting that the original concept was to protect people if something went wrong and they needed money. I want to means-test Social Security -- making it a program for the needy and not a program for the rich. Many Republicans will continue to press that idea, and they will continue to be excoriated publicly and greeted by commercials showing little old ladies being pushed off cliffs. The simple reality is that Republicans don't want to pay Social Security benefits to rich people, and Democrats who defend the current system do. Republicans see payroll taxes as regressive and disproportionately burdensome on the poor, (and by extension, there is inevitably even a disproportionate impact on people of color). This issue is not called the third rail of politics for no reason. Proposing cuts in Social Security payments is a thankless job. Demagogues and interest groups will do what they can to end the public careers of those who even propose the idea. But we could increase benefits for the poor and cut taxes for everyone by means testing.Now I'll review the usual-suspect category of possible solutions, which I think are bad ideas or wishful thinking:1. Raise revenue through higher tax ratesHigh tax advocates are correct in saying that the trust fund can't run out, assuming you are willing to raise payroll taxes indefinitely. This is exactly what was done from the time the law was passed in 1937 until 1990.Since 1990 the tax stands at 6.2% of your paycheck, which you might notice and miss if you're one of those who looks at their pay stub (which increasingly doesn't exist; you just see some money deposited directly in your bank account, and don't notice that the total of all deposits doesn't match your nominal income). But wait! There's another 6.2% of your paycheck that the employer is required to pay, which is painless and invisible to all workers, and virtually unknown by many. The great majority don't even realize that they're really already paying 12.4% of their income in Social Security taxes.In 2011 and 2012, the government temporarily came to its senses and remembered that high taxes like this hurt the economy in general, and workers in particular, so they temporarily lowered the Social Security tax rate for new employees. But they're back up now, and we're back to pretending that we don't think that high taxes that transfer wealth from the poor to the rich don't harm anyone. It's hard to imagine how much more we can raise this tax, in my opinion. At some point it becomes pretty tempting to just wait tables and not report your tips, or become a professional pool shark and keep all your winnings, which is not good for anyone in the long run.Social Security is a "payroll" tax (as is Medicare). That's completely different from "income" tax. Somehow. This is the sort of thing that any ten year old would call b.s. on. To review very briefly, we hear (and I hope we know now) that income taxes in the US are more progressive than in almost any other country, and that the top 1% of earners pay 35+% of the total income tax revenue collected, and the top 50% of tax returns represent 97% or so of all income tax receipts. Mitt Romney was entirely correct about the numbers on income tax; 47%, cumulatively, pay almost nothing. But payroll taxes are separate.Payroll taxes don't apply to investment income, such as interest or dividends. They don't apply to capital gains when you sell something you bought at a lower price, like real estate or a boat. In fact, if you are a "regular" worker bee like a VP of a bank, they do apply to your salary, but only the part below $113,700. So if you make $160k or 300k or $850k in salary, you don't pay any more than the person making $114k. Gee, there's pattern emerging... How would you describe people who make all their money in investments and very high incomes? Social Security benefits are paid after you reach retirement age (65 to 67) and continue to your death. This is important: if you live to be 70, you get three to five years of benefits. If you live to be 90, you get 25 or so years of benefits. If your child's father was never your husband, you don't get survivor benefits. Your benefits are based on your income while you were paying payroll taxes, so lower income means lower benefits. So the people who benefit most from Social Security are those who make a lot of money, get married and live a long time. You'd be getting a comparatively bad deal if you were not making a lot of money, had children without marrying, or died comparatively early -- which sounds to me like another case of the usual state of affairs: it's better to be rich than to be poor. We need to take less money from the poor and stop giving it to the rich.2. Cut benefit expenses by raising the retirement ageOne way to cut expenses is to raise the retirement age. And it's been done already. My retirement age is not 65 - it's 66 years and ten months. I'm sorry to see those 22 months of my life go to The Man, as I will have to continue in wage slavery before beginning my life of ease under Social Security. Do we want to hand our grandchildren a system that requires that they work until five or ten years before they die? Isn't that the opposite of what we should be trying to do?3. Increase revenue by changing demographicsWhere could we get more taxpayers? Immigration and higher birth rates add to the number of employees paying into the fund. Moderate levels of immigration have made Texas an economic rocket engine; a large percentage of the jobs added in America are in Texas, which gets immigration from the south as well as from other states in the US. But for many reasons we can't absorb infinite levels of immigration. Birth rates are declining all over the world, so that's surely not a solution. In any case, both become a Ponzi scheme -- something that isn't really a fair description of the current Social Security system except in this scenario, where we use mathemagic and posit that the number of workers will grow forever.4. Decrease expenses by lowering life expectancyPeople are living longer much longer now. This is hardly a problem -- an opinion that I hold more dearly as I grow older. I suppose a cataclysmic epidemic would address this issue, or we could take proactive government policy measures, a la Jonathan Swift, perhaps. In his (satirical) novel Boomsday, Christopher Buckley's character Cassandra Devine (good name for someone who sees into the future, right?) suggests that our nation's elderly help eliminate the trust fund shortfall by eliminating themselves altogether, voluntarily, which they do, to her shock and surprise. Cross this one off the list.5. Increase revenue in a better economy with more jobsAnother thing that would make the Trust Fund healthier would be more workers paying current rates rather than being unemployed and paying no tax at all. Unfortunately, current high unemployment is having the opposite effect. People are dropping out of the work force and no longer even hoping to find a job. This lowers the denominator in the unemployment rate, making that statistic look less scary, but be aware that the number of Americans actually working full time jobs has not recovered to 2008 levels even in absolute terms, much less kept up with population growth.Total full time employed civilians - 2001 to 2013 (click to see enlarged, with labels):The civilian labor participation rate (the percentage of the working age population that is working) is falling and is roughly where it was when the Shah ruled Iran and Jimmy Carter ruled the United States.Labor participation rate - 1977 to 2013 (click to see enlarged, with labels):For heaven's sake, and the sake of your children, save money for your retirement and take out private insurance policies in case you die or are disabled. You don't want to be dependent on Social Security income. If you do need government aid, so be it; we must make sure that the funds are available. Use the Social Security Administration's Calculators, and get this firmly into your head: seven percent of our GDP is not enough money to keep you comfortable when you stop working due to age or disability. Will the trust fund ever be completely depleted? I think not. But will we all continue to receive the benefits now built into the system? No. I sincerely hope that you and I and everyone we know will not need Social Security at all, and can reallocate our share of the fund to those who cannot do without it.

Original Question: What are the most clever scams you have come across?The Social Security Trust Fund Retirement System used to brow beat the tax paying public.Totally designed ass-backwards. Generation after generation lives longer and longer. Fewer people paying in. Inflation is constant, so that you get back (after inflation adjusted dollars) less and less. This has been known since its creation in 1935. Article from Saturday Evening Post below.Had you taken the same money, after tax, invested it in the Dow Jones Industrial Average (stock market) you would have done better. Over time, of course and depending on when you got in and got out.Of course our education system teaches us how to cope with our peers, and be able to go to college (this same government run school system that installs in everyone that you must get a college degree). They teach us nothing about what to do with what you make ... That is odd.You are getting inflation adjusted dollars, from a pool of fewer people every year, at a dismal rate of return. The government that sets up a program where the younger generation pays for the older generation is a Ponzi scheme that would put anyone else in jail.Bernie Madoff (currently in prison) used huge payouts from other people's investments to artificially make the new entrants into his scheme look like everyone was getting rich.Social Security is a pyramid scheme. It is illegal. Unless you are in charge of administering and collecting and prosecuting this game. Sounds like the Mafia and their control.Some other people's take on this system:SOCIAL SECURITY CHECKShttp://www.freerepublic.com/focus/f-news/2966827/postsSOCIAL SECURITY NOW CALLED 'FEDERAL BENEFIT PAYMENT', not ENTITLEMENT! 12/8/2012Have you noticed, your Social Security check is now referred to as a "Federal Benefit Payment"?The government is now referring to our Social Security checks as a “Federal Benefit Payment.”This isn’t a benefit – its earned income!Not only did we all contribute to Social Security but our employers did too.It totaled 15% of our income before taxes. If you averaged $30K per year over your working life, that's close to $180,000 invested in Social Security.If you calculate the future value of your monthly investment in social security ($375/month, including both your and your employer’s contributions) at a meager 1% interest rate compounded monthly, after 40 years of working you'd have more than $1.3+ million dollars saved! This is your personal investment.Upon retirement, if you took out only 3% per year, you'd receive $39,318 per year, or $3,277 per month.That’s almost three times more than today’s average Social Security benefit of $1,230 per month, according to the Social Security Administration (Google it - it’s a fact).And your retirement fund would last more than 33 years (until you're 98 if you retire at age 65)! I can only imagine how much better most average-income people could live in retirement if our government had just invested our money in low-risk interest-earning accounts.Instead, the folks in Washington pulled off a bigger Ponzi scheme than Bernie Madoff ever did. They took our money and used it elsewhere. They “forgot” that it was OUR money they were taking. They didn’t have a referendum to ask us if we wanted to lend the money to them.And they didn’t pay interest on the debt they assumed. And recently, they’ve told us that the money won’t support us for very much longer. But is it our fault they misused our investments?And now, to add insult to injury, they’re calling it a “benefit,” as if we never worked to earn every penny of it. Just because they “borrowed” the money, doesn't mean that our investments were a charity! Let’s take a stand.We have earned our right to Social Security and Medicare. Demand that our legislators bring some sense into our government –Find a way to keep Social Security and Medicare going, for the sake of that 92% of our population who need it.Then call it what it is: Our Earned Retirement Income.••••••••••••••••••••••••••••••••••••••••••••••••••March 7, 1936 - Article - Social Security, Or De Levee Done Bust (part 1), by Frank Parker StockbridgeOn August 14, 1935, President Roosevelt signed the Social Security Act. He used a series of pens for his signature. He gave each pen, after it had done its share, to one or another of the men and women who had taking part in shaping the new law and easing its way through Congress.It was quite an impressive ceremony. After the measure had been made law by the President's signature, Mr. Roosevelt made a little speech to the assembled group. He said, in effect, that they were to be congratulated upon the successful outcome of their efforts. They had, he assured them, made history.Mr. Roosevelt was perfectly correct. The passage and signing of the Social Security Act was a historic event; for it undertakes to establish, as a continuing policy of this country, fundamentally new concepts - new in our system of government, at least - of the relations between the Federal Government and the states, between the states and their citizens, and between all citizens of the Federal Government itself.The Act sets up, for example, such innovations as these:A Federal income tax that goes all the way down to the bottom of the economic scale, taking toll from every man and woman, boy or girl, who works for wages, no matter how low. Is that new in our national scheme of things or not?The Social Security Act is not an "emergency" measure, but a permanent fixture. It will remain on the statute books of the United States in principle, though probably in amended form, from now on.The Supreme Court may declare it unconstitutional. That is at least possible. Or the present or some succeeding Congress may repeal it. That is unlikely. No Congress elected by popular emotion will repeal the vital provisions of the Social Security Act - not if its members want to be re-elected. No political party or individual politician is likely to try and tamper with the Social Security Act, unless by way of expanding its scope and enlarging its benefits, for its principle is rooted in the widespread and growing belief that Uncle Sam is Santa Claus. (pg. 10)This brings us down to the final item, a new kind of tax which reaches more citizens and cuts across lower levels of economic status than any direct tax ever levied in America. It is:An income tax on all wage earners, levied directly on their pay envelopes, for old-age benefits. It is to be deducted by employers from all regular wage or salary payments every payday, and turned over to the federal Treasury. This tax runs at the same rates as the old-age benefit tax levied on employers; beginning on January 1, 1937, the rate is 1%. It applies, however, only to wages and salaries below $3000 a year. If your earn more than $250 a month, you don't have to pay this tax on the excess above that income. Every third year thereafter the rate goes up by ½%, until in 1949 it is running at 3% of every worker's pay.Senators and representatives took few chances of laying themselves open to the charge of being unconcerned with the welfare of the indigent aged, the mothers and babies, the blind and the crippled and all the rest. Forced to choose between a blanket endorsement of the entire program, or risking being pilloried by the hustings - that is to say, the elections of 1936 - as enemies of the workers and the deaf to the appeal of motherhood and the prattle of innocent children, what did the gentlemen on Capitol Hill do?What would you have done in their place?Right; they voted for the bill, regardless of partisan affiliations. It passed the Senate by 76 votes to 6, and the House by 373 to 33. And, to paraphrase President Roosevelt's remarks when he signed the Social Security Act, they made history by their votes. (pg. 70)Comments: This is the way the labor Cannibals operate to appeal to masses of people, but it needs to be kept in mind that there was no income tax on labor when the Social Security Act of 1935 was signed. The labor Cannibals use the same tactics today. They may also be described as the "invective," which means "vehement denunciation." If you dare buck the system and somehow manage to get to keep your wages free from taxation - even though the Constitution still guarantees the right to free labor - you will be branded as a "tax protestor." In a criminal tax trial, for example, the jury will tend to close their minds once the prosecution slaps this label on you. This is just applying human nature to the case. The jurors have been mentally conditioned since childhood to think that they have a legal obligation to file and pay income tax on their labor. In the minds of the jurors, they are thinking: I've filed and paid income tax all my life, what right do you have not to? Thus, the accused is found guilty in the minds of the jury in the very beginning of the trial. Even though child support, when combined with taxation, takes 65% or more of a worker's labor in some cases, the odious label of "deadbeat" will be slapped on the person who resists this yoke. For example, if you dare to shun the obligation to support your own children after a divorce so that you can afford to survive yourself, you will be branded with infamy. Of course, nobody is told that taking 65% of a worker's labor brings the worker down into the same levels of slavery that the Nazis imposed upon the Jews in World War II; nobody's told that the status of slavery bastardizes marriages because all children are the fruit of the master - that is, the Government; nobody's told that it is the duty of masters to support the offspring of slaves. This gives you an idea of where labor Cannibalism has led. The Social Security Act of 1935 laid the foundation for it. It would be far more humane to sell many fathers into bondage than order them to pay child support. It is cruel to exploit someone's labor to the point where they can't even afford to live and to drive thousands to suicide every year. Adjusting for inflation since pre Civil War times, I would estimate that slaves today would sell for between $50,000 and $100,000 each. This should more than cover most child support orders, and the slave would be under the care of a physical master who would be obligated by law to care for the him in exchange for the use of his labor. If we're going to have slavery, then let's have it! The labor Cannibals, however, must maintain a righteous appearance in the public eye, so this remedy will never be applied. In addition, every thief knows that it's far cheaper to steal something than to buy it. This principle applies to property in the form of labor as well as other kinds of property. It should be noted that the Supreme Court, in the case of Eisner v. Macomber (1920), ruled that the income tax "did not extend the taxing power to new subjects." The Constitution granted no power to the Federal Government to extend the income taxing powers to include the labor of working people. This is the truth that the invective will never admit. To see how Frankfurter logic works in Supreme Court decisions, let's look at the case of U.S. v. Lee (1982). Here is where the Federal Government forced Social Security on the Amish people. The court stated: "Not all burdens on religion are unconstitutional and state may justify limitation on religious liberty by showing that it is essential to accomplish overriding government interest." Frankfurter was dead by this time, but his spirit still lives in the courts - the spirit of labor Cannibalism. Basically, this case simply says that if the Government wants something bad enough, the courts will let them have it. After all, isn't that what FDR and his associates wanted? These types of rulings make perfect sense when the people are slaves, for slavery reduces human labor to a mere article of commerce. If something is commerce, then it can be taxed and regulated at the pleasure of Government.March 14, 1936 - Article - Social Security, Or De Levee Done Bust (part 2), by Frank Parker StockbridgeOn the face of it, the old-age benefit project is an insurance system, designed to provide retirement annuities for all workers when they reached the age of 65 years. If carried out on the lines laid down in the Social Security Act, it will, in time, accomplish that end."The only certain thing about it," said Professor Witte, when I asked him what had been in the mind of the President's Committee on this point, "is that, once established, nothing is harder to kill than a Government-administered old-age retirement system. The oldest of them all, in Germany, was established by Bismark in 1889. It survived through the Great War, it was maintained by the republic that succeeded the Kaiser's regime, its beneficiaries suffered, like all others, in the great inflation of 1920-21, but the system was maintained, and under the Nazi regime it is almost the only established institution in Germany surviving from the old days which has not been seriously interfered with or altered. The rates of premium payments have changed, the value of the retirement annuities has varied, but the principle is imbedded so deeply in the popular ‘mores' that even a dictator would not dare to abolish it."The present fact is the old-age benefit tax. Anyone's guess is about as valid as another's as to what this will come to a generation hence, but beginning January 1, 1937, we've all got to pay it, employer and employee alike. From each will be taken 1% of pay rolls in each of the years 1937, ‘38, and ‘39; 1½% in 1940, ‘41 and ‘42; 2% in 1943, ‘44 and ‘45; 2½% in 1946, ‘47 and ‘48; and 3% in 1949 and every year thereafter, making the total draw-down from wages and salaries 6%.Like the milk that the grocer's boy spilled on the cash register, that is going to run into money fast.Take the employer's excise tax on pay rolls as a starting point. How many employers there are, and what their pay rolls come to, are questions which lie, so far, in the misty mid-region between statistics and guesswork. The latest available statistics are those of the U.S. Department of Commerce, which computes at $29,300,000,000 the total of wages and salaries paid out and received by everybody in 1933. Right here, however, the guesswork begins, for the old-age benefit tax does not apply to the wages of farm workers - some 2,000,000 of them - nor to the salaries of the 2,000,000 employees of Federal, state and local governmental units. Nor does it apply to wages paid to sailors, domestic servants and person employed by charitable or other nonprofit institutions, nor to salaries above $3,000 a year. But pay rolls are higher now that in 1933. The estimate of the President's Committee is $37,165,000,000 pay rolls for 1937. On that the initial old-age-benefit tax will run up to above $2,000,000,000 a year, and continue to yield that much or more from then on. Or so the President's Committee calculates.What happens then? What becomes of the huge fund created by these new taxes? Only a small fraction of it is to be disbursed for old-age benefits before 1942. For five years the proceeds of these taxes are to lie in the Treasury, earning interest at a rate, specified in the Act, of not less than 3%. By the end of 1940, the President's committee estimates, this reserve will have reached, with accrued interest, a total of $2,960,200,000.; five years later, it is predicted, it will be $9,338,800,000. By 1960 it will come to $36,381,700,000, or more than the total of the present national debt.All the life-insurance companies in America combined have not taken in as much as $60,000,000,000 in premiums since the first of them started business, a century ago. Uncle Sam, starting from scratch, expects to take in more insurance cash in 35 years what the insurance companies did in a hundred. And by 1980, the President's Committee estimates, the reserve, after the payment of more than $4,000,000,000 in benefits in that one year alone, will amount to $50,000,000,000. (pp. 27, 37)The size of that estimated reserve has worried many students of the Social Security Act. They shudder when they contemplate the temptation to extravagance held forth to politicians in high office by a lump sum of $50,000,000,000, or half of it. But there isn't going to be any such amount of loose change lying around in the old-age-benefit reserve fund. The Federal Government is going to use every dollar of it to pay its other debts with.The largest retirement pension, however, that anyone can collect under the Act is $85 a month. (pg. 40)The unemployment tax on the wages of a $20 a week worker will come to $31.50 a year by 1938. That is about the average wage of today, taking all business and industry, by and large. When the old-age tax is in full effect, the tax paid by the employer on the wages of the average employee will be above $62 a year.Certainly, the whole Social Security Act introduces a new note in American life, a foreign note in every sense of the word. We are an adaptable people; moreover, we have a way of disregarding or changing laws that don't work. But the first effect of reading the Act upon an average American, rooted in the American tradition of individual responsibility and unschooled in the social-service mysticism which sees dreams as realities and creates Utopia by waving a magic wand, has been well expressed by one of the members of the Social Security Board, Judge Miles, of Arkansas.An Arkansas Delta Negro, Judge Miles reported, was drafted in the World War. He was placed in a labor battalion, trained for a short period, loaded on the train, and shipped to the coast for transportation overseas. He was kept back from the ocean until time to load the boat; he was marched down to the sea at night and placed in the hold. About ten o'clock the next morning, when the boat was well out on the ocean, he was permitted to come up on deck, and he stuck his head over the rail. He threw up his hands and yelled, "Good Lawd! De levee done bust!" (pg. 48)Comments: In took only until 1939 for the Federal Government to begin spending the money brought in from social security taxes. The social security system has been and always will be a system that enslaves class A for the benefit of class B. A represents the working class and B the recipients of the labor taken from the working class. In 1980, when the old-age pension fun was supposed to have a $50,000,000,000 reserve, it took one of the biggest tax increases in history to bail the system out. The old-age pension fund was only supposed to be used to pay out old-age benefits, and the original social security card said on them that they were not for identification purposes. Things sure have changed, haven't they? This shouldn't surprise anyone, since the system was started and then administered by people who used lies and deceit to establish their power. The enormous sums of money gathered in from taxing labor is important. Abraham Lincoln, in a speech he gave at New Haven on March 6, 1860, stated:Look at the magnitude of this subject. One sixth of our population, in round numbers - not quite one sixth, and yet more than a seventh - about one sixth of the population of these United States, are slaves. The owner of these slaves consider them property. The effect upon the minds of the owners is that of property, and nothing else; it induces them to insist upon all that will favorably affect its value as property, to demand laws and institutions and a public policy that shall increase and secure its value, and make it durable, lasting, and universal. The effect on the minds of the owners is to persuade them that there is no wrong in it. The slaveholder does not like to be considered a mean fellow for holding that species of property, and hence has to struggle within himself, and sets about arguing himself into the belief that slavery is right. The property influences his mind. The dissenting minister who argued some theological point with one of the established church was always met by the reply, "I can't see it so." He opened his Bible and pointed him to a passage, but the orthodox minister replied, "I can't see it so." He showed him a single word - "Can you see that?" "Yes, I see it," was the reply. The dissenter laid a guinea [gold coin] over the word, and asked, "Do you see it now?" So here. Whether the owners of this species of property do really see it as it is, it is not for me to say; but if they do, they see it through two billions of dollars, and that is a pretty thick coating. Certain it is that they do not see it as we see it. Certain it is that this two thousand million of dollars invested in this species of property is all so concentrated that the mind can grasp it at once. This immense pecuniary interest has its influence upon their minds.The power to tax the labor of every worker in a vast country such as the United States, is a taxing power that has no limitations, since labor is the foundation of all other property. For example, let's say you have 100,000,000 workers who average $30,000 a year in wages, to make things simple. If the government can tax that labor at the rate of 1/3 of your wages, then that means that each worker would pay an average tax of $10,000 a year. So, let's do the math. 100,000,000 workers multiplied by $10,000 would equal $1,000,000,000,000 [$1 trillion] a year. Do you think that political parties that have this much money coming in every year are going to want to give it up? Do you not think that these political parties will naturally enact laws that will secure their rights to the labor of the multitudes of working people? Does not this enormous pecuniary interest in the labor of the people have an influence on the minds of those in power? Lincoln, back in his day, referred to the approximate sale price if the rights to the labor of all the slaves of the South were sold. In other words, if one buyer back then had $2,000,000,000, then they could have bought all the slaves and this would have given the new master the command of the labor of one sixth of the population at that time. Frederick Douglass, while still a slave in 1838 under the ownership of Master Hugh, was able to get his master to agree to let him go out and live on his own as long as Douglass paid him $3 per week for the privilege. Douglass said on page 215 of his book The Life And Times of Frederick Douglass (1882) that: "This was a hard bargain. The wear and tear of clothing, the losing and breaking of tools, and the expense of board made it necessary for me to earn $6 per week to keep even with the world." The important thing to remember is that whether Douglass lived directly under his master's care or was given the privilege to live apart from his master, his labor was not his own property - Douglass' labor belonged to his Master Hugh. His allowance from labor was always at the command of his master.