Social security Tax Term Paper Example | Topics and Well Written Essays - 2500 words

Social security Tax - Term Paper Example The ultimate beneficiary of tax collections are the masses who are given services like quality health services, public schooling, safety and security, cleaner neighborhood, better road and other infrastructural developments. Thus, it can be said that the government uses the people’s money and put it into use that can be translated into better facilities for them. One such taxation is that of social security taxation, the proceeds of which are pooled into to provide old-age benefits, pensions, child health and unemployed. Thus, the key beneficiaries of this kind of taxation are the most vulnerable classes of the society. This paper will shed light on the whole system of social security taxation, its pros and cons and its efficiency in fulfilling its intended purpose. In order to clarify the present day social security system it is imperative to study its evolution over time. The concept of social security was pioneered in 1935 when the American association for Social security led by Abraham Epstein coined the word social security. The actual payments were started in the January of 1937 as retirement funds. However these were only given to the primary working member of the family. It was only in 1939 when the survivors benefit for spouses and children were introduced. With time, more benefits were added to the scope of social security for example, benefits for the disabled were initiated in 1956 and it was followed by a major milestone in the year 1965, when the congress signed the social security law to add medical care to its portfolio of benefits. In order to ensure that people pay this kind of taxation for their own good in the long run, social security number was issued. These numbers became the basis of identification after some time and was used by the civil service commission and revenue boards by 1962. In the United States, the social