From Roosevelt to Reagan and Nixon to Clinton – The decisions that shaped American pensions and the misinformation that continues to circulate
Historical and journalistic research | Greek News & Radio FL
3 November 2026
A text that has been circulating on social media for years claims that the Democratic Party violated Franklin Roosevelt's original promises, transferred Social Security money to the general budget, imposed taxes on pensions, and allowed immigrants to receive benefits without ever having worked in the United States. How much of this is true? The answer lies in the official historical records of the American government itself.
A political message with historical inaccuracies
The United States Social Security, known as Social Security, is one of the country's most important social programs.
Millions of workers pay insurance contributions throughout their working lives, expecting to have a stable source of income when they retire.
However, political controversies, theories and historical claims have developed around this system that are often far from reality.
A particularly widespread publication attributes almost all unfavorable changes to Democratic presidents, presenting Republicans as defenders of the original system.
The real story is much more complex.
In fact, the Social Security Administration (SSA) has dedicated two special historical publications to debunking precisely these claims, entitled Debunking Some Internet Myths.
1935 – Franklin Roosevelt: The Birth of Social Security
On August 14, 1935, Democratic President Franklin Delano Roosevelt signed the Social Security Act into law.
The United States was still trying to recover from the Great Depression of 1929.
Millions of elderly Americans lacked financial security, while unemployment and poverty had caused enormous social unrest.
Roosevelt created a federal system of protection that included old-age pensions, as well as other forms of social support.
But what exactly did he promise?
The publication circulating online claims that participation in the program was initially voluntary.
This is false.
From the beginning, employees employed in positions covered by the program were required to pay contributions.
At that time, of course, many categories of workers were outside the system.
A second claim states that Roosevelt had promised a social security contribution of just 1% on the first $1.400 of annual income.
The reality is different.
The original law provided for a contribution of 1% by the employee and 1% by the employer, on the first $3.000 of annual earnings.
In addition, the law provided for future increases in contributions.
Neither the $1.400 limit existed nor was 1% established as a permanent percentage.
The truth about the tax deduction of contributions
Another argument holds that workers were originally able to deduct Social Security contributions from their taxable income and that Democrats later eliminated this right.
And this is historically inaccurate.
The 1935 law did not allow employees to deduct these contributions from federal income tax.
Therefore, there was no subsequent government that abolished such an original right.
There are currently special tax provisions for the self-employed, who can deduct part of their self-employment tax. But that is a different issue.
1965–1968 – Lyndon Johnson: Medicare and the Great Misunderstanding of Reserves
Democratic President Lyndon Johnson signed the legislation that created Medicare on July 30, 1965.
It was a historic reform, as it established federal health insurance for older Americans.
This reform was supported by members of both major parties, although the Democrats were the main parliamentary force in favor of it.
But Johnson is also accused of taking Social Security money and transferring it to the general budget so it could be used for other government spending.
What really happened?
In 1968, during the Johnson administration, it was decided to include the transactions of the insurance funds in the consolidated federal budget, effective from 1969.
This was a change in the way government accounts were presented.
It did not mean that the insurance funds were abolished or that their reserves were legally transferred to the general budget.
There is, however, one important detail.
Social Security's surplus revenue is invested in special U.S. Treasury securities.
The cash received by the Ministry of Finance from the issuance of these securities can be used for the general financing needs of the state.
In return, the insurance funds hold securities that are obligations of the State and yield interest.
This is a financing mechanism through government securities, not proof that some government abolished the Trust Fund and illegally appropriated its reserves.
The SSA itself explains this mechanism in detail.
1972 – Richard Nixon: The Creation of SSI
Here lies perhaps the most significant inaccuracy of the publication.
The text claims that Democratic President Jimmy Carter allowed immigrants to receive Social Security pensions without having paid contributions.
This category confuses two completely different programs.
The first is Social Security, which is based mainly on insurance contributions from employees and employers.
The second is Supplemental Security Income (SSI), a financial assistance program for people with extremely low income and limited resources who meet age, disability, or blindness requirements.
SSI was established on October 30, 1972.
The President of the United States at the time was Republican Richard Nixon.
The first payments of the program were made in January 1974.
This program is funded by general government revenues and not by Social Security contributions.
Certain categories of legal immigrants may qualify for SSI, but strict restrictions apply.
Therefore, the presentation of the program as a supposed retirement privilege granted by Jimmy Carter to immigrants is false.
1977 – Jimmy Carter: The Economic Stabilization of the System
Democratic President Jimmy Carter did indeed make significant changes to Social Security.
On December 20, 1977, he signed legislation aimed at addressing serious financial problems.
The American economy was facing high inflation and the consequences of the recession of previous years.
The reforms included changes in financing, increases in insurance charges and a revision of the way future pensions are calculated.
The goal was to limit deficits and improve the long-term sustainability of the system.
There is, however, no historical basis for the claim that Carter established pensions for all immigrants who turned 65 without an insurance history.
1983 – Ronald Reagan: When did pension taxation really begin?
One of the most interesting historical facts concerns the taxation of Social Security benefits.
The online publication links the start of taxation to Bill Clinton.
This is not correct.
The tax began in 1984, under legislation signed on April 20, 1983, by Republican President Ronald Reagan.
The reform emerged from a broader cross-party effort to economically stabilize the system.
It provided that, for retirees with income above certain limits, up to 50% of Social Security benefits could be included in taxable income.
At the same time, the same legislation established the gradual increase in the full retirement age from 65 to 67 years.
These changes were not the exclusive initiative of one party.
They were supported by both Republicans and Democrats in Congress.
1993 – Bill Clinton: The expansion of taxation to 85%
Ten years later, Democratic President Bill Clinton signed new economic legislation.
On August 10, 1993, the Omnibus Budget Reconciliation Act went into effect.
The reform increased from 50% to 85% the maximum percentage of Social Security pensions that could be included in taxable income for higher-income beneficiaries.
Here is an element of the original post that is real.
On August 6, 1993, the Senate was tied 50–50 in the final vote on the overall financial bill.
Vice President Al Gore cast the deciding vote in favor of its approval.
Therefore, the claim about Gore's vote is correct, but presenting it as evidence that pension taxation began then is incorrect.
The taxation had begun a decade earlier, under Reagan.
It is also necessary to clarify something that is often misunderstood:
85% is not the tax rate imposed on pensions.
It is the maximum percentage of benefits that can be calculated as taxable income.
The actual tax depends on the total income and the tax rules that apply to each retiree.
Can immigrants receive Social Security without having worked?
The answer requires an important distinction.
To acquire a personal right to a Social Security old-age pension, 40 insurance units are generally required, which usually correspond to ten years of insured work.
The rule applies to both American citizens and legal immigrants.
However, there are spouse and survivor benefits that are based on the insurance history of another employee.
Thus, a person can, under certain conditions, receive benefits without having personally worked for ten years.
Also, international social security agreements allow, in specific cases, periods of insurance in other countries to be taken into account.
This does not constitute a free pension due to immigration status.
It means that the right is based on a specific insurance history or a legally recognized family relationship.
Accordingly, different rules apply to SSI, with strict income, asset, and immigration restrictions.
What is the situation today, in 2026?
According to the Social Security Administration, for 2026 the basic contributions are as follows:
- 6,2 % for Social Security by the employee, with an equal contribution from the employer.
- 1,45 % in addition by the employee for Medicare, also with an equal contribution from the employer.
- 15,3% total as a key factor for the self-employed.
- 184.500 dollars as the maximum annual income on which the Social Security contribution is calculated for 2026.
The Medicare contribution is not limited to this maximum amount, and for higher incomes an additional Medicare tax may apply.
At the same time, new tax legislation provides, for tax years 2025–2028, an additional deduction of up to $6.000 for eligible taxpayers aged 65 and over, with income restrictions.
This deduction does not eliminate taxation of Social Security benefits, but it can reduce the overall tax burden of some elderly taxpayers.
The real problem: The sustainability of Social Security
Beyond the confrontation between Democrats and Republicans, there is a serious issue that should not be overlooked.
The financial sustainability of the American insurance system is a perennial challenge.
The Social Security administrators' annual report for 2026 predicts that the reserves of the Old Age and Survivors' Pension Fund (OASI) will be depleted in the fourth quarter of 2032, if there are no legislative changes.
This does not mean that pensions will be reduced to zero.
It means that, based on current projections, ongoing revenues will be sufficient to pay approximately 78% of the planned benefits of this fund after the reserves are depleted.
This is a projection under specific economic and demographic assumptions, not an inevitable outcome.
Tackling the problem requires political decisions that will affect workers, businesses and retirees.
Conclusion: History cannot be written with party slogans
The story of Social Security is not the story of a single party.
Democrat Franklin Roosevelt created the system in 1935.
Democrat Lyndon Johnson signed the legislation that created Medicare in 1965.
Republican Richard Nixon instituted SSI in 1972.
Democrat Jimmy Carter introduced significant financial reforms in 1977.
Republican Ronald Reagan signed legislation in 1983 that introduced taxation of part of retirement benefits and gradually increased the full retirement threshold.
Democrat Bill Clinton expanded the ability to tax up to 85% of benefits for higher-income retirees in 1993.
All of these presidents, along with Congress, helped shape the current system.
Their decisions can and should be evaluated, even criticized.
But the evaluation must be based on actual legislative and historical data.
Social Security is not owned by Democrats or Republicans. It belongs to millions of Americans who have worked, paid contributions, and base their financial planning on the existence of this system.
And that's exactly why the public debate about the future of Social Security needs more evidence and less political misinformation.
SOURCES – OFFICIAL DOCUMENTATION
1. Social Security Administration – Debunking Some Internet Myths
Official historical analysis of the false claims about Roosevelt's initial promises.
Official SSA Historical Analysis – Part 1
2. Social Security Administration – Myths and Misinformation, Part 2
Official answers about the Trust Fund, pension taxation, Al Gore and immigrant benefits.
Official SSA Historical Analysis – Part 2
3. Social Security Administration – Taxation of Social Security Benefits
History of the taxation of benefits in 1983 and 1993.
4. United States Senate – Votes to Break Ties
Official record of Al Gore's decisive vote on August 6, 1993.
5. Social Security Administration – Social Security Trust Funds
Official explanation of the management and investment of insurance reserves.
6. Social Security Administration – SSI for Noncitizens, 2026
The actual requirements for granting SSI to non-US citizens.
SSI for non-US citizens – 2026
7. Social Security Administration – 2026 Trustees Report
The official annual report on the financial situation and forecasts of insurance funds.
Social Security Annual Report 2026
SOURCES – OFFICIAL DOCUMENTATION
1. Social Security Administration – Debunking Some Internet Myths
Official historical analysis of the false claims about Roosevelt's initial promises.
Official SSA Historical Analysis – Part 1
2. Social Security Administration – Myths and Misinformation, Part 2
Official answers about the Trust Fund, pension taxation, Al Gore and immigrant benefits.
Official SSA Historical Analysis – Part 2
3. Social Security Administration – Taxation of Social Security Benefits
History of the taxation of benefits in 1983 and 1993.
4. United States Senate – Votes to Break Ties
Official record of Al Gore's decisive vote on August 6, 1993.
5. Social Security Administration – Social Security Trust Funds
Official explanation of the management and investment of insurance reserves.
6. Social Security Administration – SSI for Noncitizens, 2026
The actual requirements for granting SSI to non-US citizens.
SSI for non-US citizens – 2026
7. Social Security Administration – 2026 Trustees Report
The official annual report on the financial situation and forecasts of insurance funds.
Social Security Annual Report 2026
