The Social Security scam: How the government taxed your retirement twice — then let 60 million people steal it while taxing you again

A Guest Op-Ed on Biz Pac Review Business & Politics by Mark J. Quann

Op-ed views and opinions expressed are solely those of the author.

Let’s talk about the biggest bait-and-switch in American history—Social Security.

It was supposed to be a lifeline for retirees, a system you paid into your entire working life so that one day, when you’re older, you could finally collect what’s yours. But somewhere along the way, the government decided that wasn’t enough. They started taxing Social Security benefits—not once, but twice—and now we’ve discovered millions of people who shouldn’t even be receiving it at all.

It’s time to expose the Social Security tax trap—and, more importantly, how to escape it.

When Social Security was introduced in 1935, it came with one key promise—it would never be taxed. You paid into it through payroll deductions, the government held onto it, and eventually, you’d get your money back. Simple, right?

Well, fast forward to 1983, and that promise was thrown out the window. Congress decided that up to 50% of your benefits could be taxed. Then, in 1993, they doubled down—now up to 85% of your Social Security check could be taxed.

Let me say that again: The government forced you to pay into a system for decades, and then when it was finally time to collect, they taxed it AGAIN.

Why? Because they “needed” more money. Social Security has become a triple taxation scam.

Think about it. Every dollar you put into Social Security was already taxed when you earned it. But the taxes didn’t stop there. You get taxed on your paycheck to fund Social Security. Then, if you were responsible and saved for retirement using a 401(k), when you withdraw from it, it can push you into a higher tax bracket. That higher tax bracket triggers taxes on your Social Security benefits! 

So congratulations—you just got taxed three times on the same money.

Does that seem fair?

Meanwhile, billion-dollar corporations and banks get bailed out with your tax dollars every time they screw up, but if you worked hard and saved, you’re the one who gets punished.

And just when you thought it couldn’t get worse, we now know D.O.G.E., the Department of Government Efficiency, discovered a shocking truth: Social Security has 394 million recipients, yet the U.S. only has 334 million citizens.

That’s 60 million “extra” people collecting Social Security benefits.

Who are they? Ghosts? People from an alternate dimension? Or just straight-up fraudsters siphoning billions?

While the government tells you there’s “not enough money” in Social Security and keeps pushing the retirement age higher, they’re happily giving away benefits to millions of fake people—some of whom are supposedly 140 years old.

But don’t worry, they’ll audit you if they think you might have deducted too many business meals last year.

And it only gets worse. 

The Pentagon has been audited seven times and has failed every single time. They openly admit it: “Oops, we failed the audit again.”

Imagine telling the IRS, “Oops, I failed my audit. Sorry, no receipts!”

You’d be fined, penalized, and possibly arrested.

But when the government loses trillions of dollars, they just shrug and demand more.

They audit you constantly—your paycheck, your savings, your business expenses. But when it comes to their own books? It’s a black hole.

Believe it or not, there is some good news here. There’s a way to legally escape the tax trap.

Now that you see how the system is designed to drain your wealth, what can you do about it?

The answer is simple: Stop playing their game and start using the same strategies the wealthy use.

This is where the Be SMART, Pay Zero Taxes plan becomes a vital weapon in the war against the government wasting your money. It’s a blueprint for legally avoiding taxes, including the triple taxation on Social Security.

The Be SMART plan includes four simple steps, as I explain in my book. 

Ditch the 401(k) Tax Bomb – Instead of deferring taxes and triggering extra Social Security taxes later, use Roth IRAs, IULs (more about this below), and brokerage accounts where you control the taxation.

Leverage “Buy, Borrow, Die” – The rich don’t “withdraw” money and trigger taxes. They borrow against their assets tax-free and live off the loans. You can do the same. Who wouldn’t want to “live off the borrow button” and pay no taxes?

Get Smart About Tax-Free Growth – Indexed universal life insurance (IULs) allows you to grow your wealth tax-free and use buying and borrowing to even avoid the tax man once again and pass wealth tax-free to your heirs.

Break Free from the IRS Plantation – The more you borrow against your assets, the less taxable income you report. That means no Social Security tax trap and no triple taxation.

The middle-class tax trap isn’t inevitable—but it is a test. A test to see if you’re willing to learn the rules and play to win.

Be SMART Pay Zero Taxes exists for one reason—to teach you how to stop being the IRS’s favorite piggy bank and start keeping more of what’s yours.