Reply #18: Well, you are right that it has its own tax schedule . . . [View All]

[MousePlayingDaffodil]

. . . and a different name. But you're mistaken if you think that the Social Security payroll is any different, as a matter of law, from any other federal tax. It is not.

I direct your attention to the Social Security Act of 1935 itself, and to section 807, which provided:

"COLLECTION AND PAYMENT OF TAXES

"SEC. 807. (a) The taxes imposed by this title shall be collected by the Bureau of Internal Revenue under the direction of the Secretary of the Treasury and shall be paid into the Treasury of the United States as internal-revenue collections."

Section 807 was later repealed, but only because this section of the act was moved to the Internal Revenue Code, specifically, Chapter 25, entitled "General Provisions Relating to Employment Taxes." See 26 U.S.C. § 3501:

"Collection and payment of taxes

"(a) General rule

"The taxes imposed by this subtitle shall be collected by the Secretary and shall be paid into the Treasury of the United States as internal-revenue collections."

* * * *

Put simply, there is no separate "bucket." As a matter of law, Social Security payroll taxes are collected and sent to the U.S. Treasury, to be treated just like the revenue raised by the federal income tax.