Chapter 5

SOCIAL SECURITY IS NOT A TRUST FUND OR INSURANCE

Social Security is socialism, not insurance, not a pension, nor a trust fund.

I will explain in another chapter why your federal government cannot give entitlements to ordinary people.  But first, I will convince you that you did not earn any SS benefits, and you did not deposit anything into a trust fund, you did not earn a pension, and you did not pay any insurance premium. 

In 1937 the Social Security Act was declared unconstitutional because, according to the federal appellate court, it was using public funds for private purposes, as a "trust fund" and as "insurance" - Davis v. Boston, 89 F2d 368.  The court declared that as an excise tax, which it claimed to be, it could not be imposed on wages since an excise may be placed only on articles of consumption.  (This case reversed a lower court’s ruling in 17 FSupp 97, which decided that it was valid as an excise tax).  A month later, the Supreme Court, in both Helvering v. Davis, 301 US 619 (1937) and in Steward Machine Co. v. Davis 301 US 548 (1937), both cases decided on the same day, declared the appellate court was wrong.  Although they did not explain why the appellate court was wrong, they reversed the appellate court. 

The Supreme Court in Helvering v. Davis, 301 U.S. 619 (1937):

“The proceeds of both  taxes [Social security taxes on “employers” and “employees”] are to be paid into the Treasury like internal revenue taxes generally, and are not ear-marked in any way. Section 807(a), 42 U.S.C.A. 1007(a).”

If the funds are “not earmarked in any way”, then they can’t be a trust fund or insurance.  The Supreme Court found that the appellate court was wrong to claim that there is a trust fund or insurance.  THERE IS NO TRUST FUND AND IT IS NOT INSURANCE.  The Supreme Court refused to face the question of whether Social Security was an excise tax.  They declared: “We find it unnecessary to make a choice between the arguments, and so leave the question open.”

That’s right!  There is no official explanation of why Social Security is constitutional.  You are about to learn why, but you won’t like it.   

Also consider that the Hearings before the House of Representatives Committee of Ways and Means Subcommittee entitled “Legal Status of OASI Benefits”, November 27, 1953 also confirmed that Social Security was not insurance.

By the way, there are some minor trust funds for federal worker's compensation, black lung disease, vaccine injury and a few others (these are in the Internal Revenue Code in sections 9501 to 9510, not in the Social Security Act ).  Nowhere is there a trust fund for old age benefits.  Nowhere does the Social Security Act  have provisions for a trust fund.  You can search it all you want, but you won’t find it.  THE SOCIAL SECURITY ACT HAS NO PROVISIONS FOR A TRUST FUND.

As further proof that there is no trust fund or insurance: In 1980 the Supreme Court in Fleming v. Nestor determined that Social Security remains constitutional because there has never been a promise to pay benefits.  Again I repeat: SOCIAL SECURITY REMAINS CONSTITUTIONAL BECAUSE THERE IS NO TRUST FUND AND IT IS NOT INSURANCE AND THERE IS NO PROMISE TO PAY BENEFITS.

Allowing your family to partake of SS is a sin (1 Tim 5:8, Mark 7:9-13).  The phrase “worse than an infidel” may seem harsh, but it is in your Bible.