Glossary of Terms

Social Security Act 2019-10-05 08:00:00

Social Security Act

The Social Security Act is a law introduced in 1935 designed to transfer wealth from the working population to older, retired people. The Social Security system is funded via a payroll tax.

The Social Security Act was introduced by President Franklin D. Roosevelt during the Great Depression in 1935. The government began collecting the tax from workers in 1937 and making payments in 1940.