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"It is a true tax"
===The payroll tax===
===The payroll tax===
{{main|Flemming v. Nestor}}
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There are four component parts that constitute payments to a workers public sector retirement fund, of which the payroll tax paid by workers furnishes only half. Employers are required to pay the other half based on a percentage of the workers gross wages (W-2 income). The employer's share of mandated payments, on behalf of the worker, is not seen in the worker's gross wages, yet the cost is very real. Other factors also weigh on employers ability to give raises, extend overtime, or create new jobs. The amounts withheld and paid to the federal Treasury constitute the largest component of the growing [[national debt]]. And since this debt is created by the aggregate total of workers compensation, the more people employed, the more hours they work, the greater the growth of federal obligations that are promised to be repaid in the future. Hence, unlike most debt that is repaid by labor, labor is the source of the national debt. The national debt can never be "paid down" by people working hard and long hours; rather paid labor only adds to the national debt.
There are four component parts that constitute payments to a workers public sector retirement fund, of which the payroll tax paid by workers furnishes only half. Employers are required to pay the other half based on a percentage of the workers gross wages (W-2 income). The employer's share of mandated payments, on behalf of the worker, is not seen in the worker's gross wages, yet the cost is very real. Other factors also weigh on employers ability to give raises, extend overtime, or create new jobs. The amounts withheld and paid to the federal Treasury constitute the largest component of the growing [[national debt]]. And since this debt is created by the aggregate total of workers compensation, the more people employed, the more hours they work, the greater the growth of federal obligations that are promised to be repaid in the future. Hence, unlike most debt that is repaid by labor, labor is the source of the national debt. The national debt can never be "paid down" by people working hard and long hours; rather paid labor only adds to the national debt.
In his brief for the case [[Flemming v. Nestor]], Arthur Sherwood Flemming argued that:
<blockquote>The old-age monthly benefits program which title II of the Social Security Act establishes is not a federally administered 'insurance' program. The contribution exacted under the social security plan is a true tax. It is not comparable to a premium promising payment of an annuity commencing at a designated age.<ref>[https://books.google.com/books?id=-GwWAAAAIAAJ&pg=PA2229 Health Services for the Aged Under the Social Security Insurance System], House Ways and Means Committee, U.S. Congress, page 2229, 1961</ref></blockquote>
Rep. [[Paul Ryan]], Chairman of the House Budget Committee in the 112th Congress, proposed in his ''Roadmap for America's Future'' a choice for all workers to be allowed to invest 2 percent of their first $10,000 of annual payroll tax into personal accounts. Workers would be allowed to select from a list of managed investment funds, approved by the government for soundness and safety, like those in the federal government's Thrift Savings Plan.
Rep. [[Paul Ryan]], Chairman of the House Budget Committee in the 112th Congress, proposed in his ''Roadmap for America's Future'' a choice for all workers to be allowed to invest 2 percent of their first $10,000 of annual payroll tax into personal accounts. Workers would be allowed to select from a list of managed investment funds, approved by the government for soundness and safety, like those in the federal government's Thrift Savings Plan.