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Bush ready to raid social security to fund tax cuts. THE faltering American economy could force American President George Bush to break one of his key campaign pledges not to use the country's abundant social security funds to finance other areas of government spending.
The Townsend Plan. In 1933, during the depths of the Depression, a doctor from Long Beach, Calif., named Francis E. Townsend came up with a plan to support the elderly. Under the proposal, the government would provide a $200-a-month pension to citizens age 60 or older, funded by a 2 percent national tax on transactions.r. Francis Townsend founded a large and powerful movement in 1933 that pushed President Franklin D. Roosevelt to establish old-age pensions in the Social Security Act. Syndicated columnist George Will offers his take on the origins of Social Security during a roundtable panel on Fox News Sunday.