In 2023, an average of 67 million Americans receive monthly Social Security checks, totaling over $1 trillion paid during the year. Two sections reduced FICA taxes owed by certain employers and delayed payment of FICA/SECA while ensuring the solvency of the Social Security Trust Funds. Move income-generating assets into an IRA. Q: Which political party started taxing Social Security annuities? A somewhat dated but detailed article about how the Social Security trust funds are invested can be found here. Prior to 1984, income derived from Social Security benefits was exempt from taxation. That the participants would only have to pay 1% of the first $1,400 of their annual Incomes into the Program, Now 7.65% on the first $90,000. Jimmy Carter and the Democratic Party. Those changes, which raised the full retirement age to 67 from 65, are still being phased in today. was deadlocked in the Senate on a tie vote of 50-50 and Vice President Myths and misstatements of fact frequently circulate on the Internet, Immigrants can qualify for SSI benefits under certain conditions, but SSI is financed by general revenues and not Social Security taxes. However, whether the Social Security Trust Fund can truly be said to be "independent" is problematic. Pat Quinn made the misleading claim that Romney added $2.6 billion in debt. To be sure, long-term debt increased by $2.7 billion during Romneys tenure. into law by President Nixon on October 30, 1972. Just in case some of you young whippersnappers (and some older ones) didn't know this. means that every function of the federal government is included in a single The school houses dozens of research and public interest programs, including the Norman Lear Center and the Knight Digital Media Center. In 1993, Joe Biden doubled down and was the deciding vote in . By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. Claim: John F. Kennedy stole money from Social Security to start the Peace Corps. Our fact check work is supported in part by a grant from Facebook. Individuals who report a combined income between $25,000 and $34,000 may be liable for income taxes for up to 50% of Social Security benefits. President Obamas signature achievement was the Patient Protection and Affordable Care Act, known colloquially as Obamacare. Q: Which Political Party started taxing Social Security annuities? During the years of our friendship we had many, many discussions about his parents (President Franklin D. and Eleanor Roosevelt) and how his father and mother never intended for the Social Security and Welfare programs to turn out the way they are today. The Social Security Trust Fund was Not because theyre biased, but because conservatives give them SO much more material. He promised: 1.) Which political party started taxing Social Security annuities? Which political party started taxing Social Security annuities? When did that change? A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equitable distribution of wealth, and public responsibility for citizens unable to avail . Prior to 1983, social security was not taxable. Franklin Roosevelt, a Democrat, introduced the Social. These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote. They were a great couple full of laughter and stories that today I continue to marvel at. Individuals who report a combined . The combined shortfall is projected to grow each year such that by 2017 net revenue flows from the general fund to the trust funds will total $515 billion, or 2.3 percent of GDP. In 1961, JFK amended Social Security to allow workers to opt for early retirement at age 62 but only men. Joe Biden and President Trump joust about tax codes and the president's tax returns. spend it? As the Social Security and Medicare Trustees themselves noted in their 2005 Annual Report: In 2005 the Social Security tax income surplus is estimated to be more than offset by the shortfall in tax and premium income for Medicare, resulting in a small overall cash shortfall that must be covered by transfers from general fund revenues. Widow or widower, age 60 full retirement age 71 to 99% of the deceased worker's basic amount. That way, once the surpluses end . Then Ronald Reagan was President! Most of the entries contained therein, however, are inaccurate regarding what changes were made and/or who was responsible for making them: . . It also expanded the program to cover the Virgin Islands and Puerto Rico. Biden voted for the bill when it came to the Senate, and it passed 88-9. But we established before the election that FactCheck is not reliable just another manifestation of the wolf in sheeps clothing a front for Obama: This is a side note to all the election talk, but do you know how I might find the party affiliation of the staffers of factcheck.org? Can I retire early with 2 million dollars? Q5: Which political party decided to start giving annuity payments Security website.). Individuals who report a combined income between$25,000 and $34,000may be liable for income taxes for up to 50% of Social Security benefits. Fact check: Biden tax plan would raise rates for those who make more than $400K, corporations, Fact check: National property tax isn't part of Joe Biden's plan, "Fact check: Biden tax plan would raise rates for those who make more than $400K, corporations", "Fact check: National property tax isn't part of Joe Biden's plan", "H.R. Surprisingly, 22% of Americans also consistent across party lines felt participation in Social Security should be "optional.". available on our website. You definitely want to spread the word on this one. The Social Security Act of 1935 set the original rate at 1% of the first $3,000 of annual income, with provisions to gradually increase that rate to 3% over the next twelve years: 1) With respect to employment during the calendar years 1937, 1938, and 1939, the rate shall be 1 per centum. "Now he wants to tax our 401k's and IRA's and he also wants to introduce a 3% annual tax on our homes.". Since many of us have paid into FICA for years and are now receiving a Social Security check every month and then finding that we are getting taxed on 85% of the money we paid to the Federal government to "put away," you may be interested in the following: Q: Which Political Party took Social Security from the independent "Trust" fund and put it into the General fund so that Congress could spend it? Repayment of Third Party Sick payment in 2020 reported as W2 Earnings in 2019, I was required to pay back Third Party Sick Pay that I received in 2019 once my Social Security Disability Benefits were approved and I received a lump sum from SS. Security program is financed or the way that Social Security payroll taxes Get advice on achieving your financial goals and stay up to date on the day's top financial stories. to immigrants? So we have a president residing over a collapse on all fronts in his foreign policy.. Wishing you a happy and peaceful Christmas! President Clinton signed the bill into law on August 10, 1993. Fifteen years after FDR signed the Social Security Act into law, millions of elderly, infirm and destitute Americans were still excluded from Social Security and dependent on public charity. Food Stamps: What Is the Maximum SNAP EBT Benefit for 2023? With regard to polls, they ALL are a farce. Contrary to what many Americans believe and what progressives love . Fairness & Accuracy In Reporting124 W. 30th Street, Suite 201 was played right before his acceptance speech. THE CORRECT ANSWERS TO THE FIVE QUESTIONS Its simply an excuse to impose harmful (and completely unnecessary) austerity measures to further divide the classes. How much do you pay in taxes if you make 40k? This was done administratively by President Johnson. This change to Social Security was but one element of the massive Omnibus Budget Reconciliation Act (OBRA) introduced in Congress in 1993. Q3: Which political party started taxing Social Security annuities? More important, the legislation he signed established the procedures for issuing automatic COLAs every year starting in 1975. Most likely this question comes from a confusion between the financing In fact, it was introduced in the House by a Democratic representative from Illinois,Dan Rostenkowski. This budget treatment of the Social The federal government began taxing Social Security annuities in 1984, after Congress passed amendments to the Social Security Act in early 1983, and President Reagan signed the legislation into . There has NEVER been a provision in Social Security allowing you to deduct payroll tax withholding on your income taxes. The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. How much do me and my partner need to earn to get a mortgage? Security Trust Fund continued until 1990 when the Trust Funds were again Not bias, michael e. Lies. Al Gore cast the deciding vote in favor of passage. It was the most important part of the Social Service Amendments of 1974, which created part D of Title IV of the Social Security Act. New York, NY 10001. 10 November 2004. He did, however, enact several administrative laws. AND MY FAVORITE: Q: Which Political Party decided to start giving annuity payments to immigrants? Reagan called it "a monument to the spirit of compassion and commitment that unites us as a people," and the dealhas been hailed as one of the great political compromises of the 20th century. Heres how every president has impacted Social Security since the program was founded during the Great Depression. The Act was drafted during President Franklin D. Roosevelt's first term by the President's Committee on Economic Security, under Frances Perkins, and passed by Congress as part of the New Deal.The Act was an attempt to limit what were seen as dangers in the modern American life, including old age, poverty, unemployment, and the burdens of . Click the button below! We work to invigorate the First Amendment by advocating for greater diversity in the press and by scrutinizing media practices that marginalize public interest, minority and dissenting viewpoints. Shop Pay is an innovative payment solution developed by Shopify. On Sept. 1, 1954, President Eisenhower dramatically expanded Social Security to include 10 million more Americans in the Old-Age and Survivors Insurance Program. Kennedy sent a special message to the Congress on Public Welfare Programs. That all changed 87 years ago with the Social Security Act, which created an insurance fund to provide a basic income for workers who had passed their earning years. You can also support FAIR on Patreon! Individual Income Tax Return . FactCheck noted that Barbara Mikkelson was a Canadian citizen (and thus unable to vote in US elections) and David Mikkelson was an independent who was once registered as a Republican. A3. President Reagan in April 1983. Q:what party eliminated the income tax deduction for social security withholding A:the democratic party Q:which party started taxing social security annuities A:the democratic party with al gore casting the tie breaking vote as president of the sennate while he was vice president Q:which political party decided to start giving anuity payments . That amendment failedwith 95 Republicans voting for it and one Republican voting against it. No one whether he be a citizen, immigrant, or illegal alien is eligible to collect Social Security benefits unless he (or someone else, such as a parent or spouse) has paid into the system. Be sure and show it to your family. Neither immigrants nor anyone else is able to collect The idea was that revenue from taxing benefits of "wealthy" recipients would go back into the trust fund and make it solvent. Which political party started taxing Social Security annuities? Do we have to pay back the third stimulus check? Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program. available on our website. Variations: A version of this piece circulated via e-mail in 2005 opened with the following introduction: Dear Friends:Many years ago in Seattle, two wonderful neighbors, Elliott and Patty Roosevelt came to my home to swim on a regular basis. Whether they liked it is another matter. Social Security payroll taxes are thus often referred to as "FICA taxes.". Snopes receives more complaints of liberal than conservative bias,[26] but insists that it applies the same debunking standards to all political urban legends. Google Snopes liberal bias to read other observations. [26][27]., As for Fact Check, if anything in veers a little right. Those whose earnings match or exceed theupper tier of each bracket could pay tax on up to 85% of benefits, according to the SSA. What Is the Average Social Security Benefit at Age 62? The first provision created a federalized health insurance program for people 65 and older before Medicare, only about half of the countrys seniors were covered by health insurance, and most coverage was minimal. Its an app that people can use just like a regular wallet to store their card details and information. These are examples of the benefits that survivors may receive: Widow or widower, full retirement age or older 100% of the deceased worker's benefit amount. More: Fact check: National property tax isn't part of Joe Biden's plan. As noted above, Social Security withholding has never been deductible from income for tax purposes. taken "off-budget." If you rely exclusively on your Social Security checks . A2: There was never any provision of law making the ( View post) Dec 23. In 1992, for example, the Social Security is one of the most hotly debated social programs in America. Q: Which Political Party started taxing Social Security annuities? Remember the Ten Commandments, Barb: You shall not bear false witness against your neighbor. This is sometimes described by saying that the Social Security A: The Democratic Party. In 1960, Eisenhower expanded the program yet again to allow disabled workers of all ages and their dependents to collect benefits. Fact: Majority of Republicans supported Social Security. List details changes made to the Social Security system over the years. The legislation denied disability benefits to people whose disabilities were related to alcoholism and/or drug addiction. There's no evidence to support the claim that Biden wrote the bill. The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. (The text of Title VIII. The Social Security bill that FDR signed in 1935 taxed income up to $3,000. can be found elsewhere The 1954 expansion also included a disability freeze provision that protected the benefits of the disabled and another that enhanced benefits by removing the lowest-earning years from the records of beneficiaries. If the majority of Republicans voted for it, Social Security, by definition, had strong bi-partisan support. Democrats who accuse [Romney] of proposing a middle-income tax increase are misrepresenting what hes saidbecause he could choose, for example, to renege on his promise to cut rates or to keep the amount of revenue neutral rather than violate his promise not to raise taxes on those in the middle., Illinois Gov. A provision of the 1993 Omnibus Budget Reconciliation Act raised the Social Security tax rate from 50% to 85% for households in a higher income bracket. The Democratic Party gave these payments to them, even though they never paid a dime into it! The federal government faces a major challenge: Social Security's $2.9 trillion in its combined trust funds, or reserves, will run out by about 2035. Like the budgets prepared by the President, these resolutions were to reflect a "unified" budget that included trust fund programs such as Social Security in the budget totals.Beginning in the late 1970s, Social Security faced financial problems, and over a period of time legislation was enacted to restore the financial health of the program. "[M]y annual tax liability is and will continue to be greater than when I was employed," said one such retiree. Finally, the act earmarked $8 million for the states to expand healthcare in all localities. A1: There has never been any change in the way the Social In 1983, Joe Biden voted in favor of taxing 50% of social security - and it passed. . 3. The original Social Security Act of 1935 specifically stated that monies paid into Social Security via payroll taxes were not to be allowed as income tax deductions. In 1993, legislation was enacted which had the effect of increasing the tax put in place under the 1983 law. http://mommylife.net/archives/2009/08/factcheckorg_-_1.html, FactCheck.org Annenberg- Obama Ayers connection. Income Taxes And Your Social Security Benefit (En espaol) between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits. Social Security: For most of the last century, 65 has been considered the standard retirement age in the United States, but that doesn't mean most Americans actually retire at that age. A memeposted to Facebook on Sept. 15 says Biden is no friend of working folks because of his voting history on taxes, such as his vote for a 1983 bill authorizing a 50% tax on Social Security. In 1972, Nixon signed a bill into law that provided a 20% across-the-board increase for monthly benefits. But thats nothing out of the ordinary.. The amendments authorized the taxation of Social Security recipients over a certain income level and increased tax rates on the self-employed to equal the employer/employee payroll contributions that fund Social Security. The amendments also removed the last remaining gender-based provisions and increased benefits for disabled widows and widowers who become eligible before 60 years old. MY FAVORITE : That participation in the Program would be completely voluntary. But Democratic presidential nominee Biden has not proposed taxing retirement accounts or a federal property tax. SSI was not enacted by the administration of President Jimmy Carter (a Democrat); it was created and signed into law in 1972, during the administration of President Richard Nixon (a Republican). Answer (1 of 5): The late Dan Rostenkowski, the Chair of the HOUSE WAYS MEANS COMMITTEE was SOLE SPONSOR OF THE H.R. The Democratic presidential nominee said he wants to equalize retirement plan tax benefits across the income scale, according to the Biden campaign. Some dealt with the way agencies exchanged information over their computer systems. . The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. The basic rule put in place was that up to 50% of Social Security benefits This change in the tax rate was one provision in a massive Omnibus Budget beneficiaries. Factchecks other observations from the DNC largely offered more spin and special pleading. For the current president, it was the coronavirus, once again, that steered legislation that would impact Social Security: President Biden signed the American Rescue Plan Act of 2021. Likewise, the Senate vote on OBRA was deadlocked at 50-50 (again, with not a single Republican voting in favor of it, although 6 Democrats voted against it) until Vice-President Al Gore (a Democrat) cast the deciding "Yea" vote. MYTHS AND MISINFORMATION ABOUT SOCIAL SECURITY- Part 1, pamphlets However, higher earners don't pay Social Security taxes on all of their income. Which political party decided to start giving annuity payments (2) With respect to employment during the calendar years 1940, 1941, and 1942, the rate shall 1 1/2 per centum. Most of the provisions involving the SSA required the agency to provide personal information and confirm Social Security numbers for millions of stimulus recipients. He had called on Congress to craft a social insurance policy just 14 months before the bill became the Social Security Act. are used by the federal government. The amendments expanded the program to 10 million more people by including the non-farm unemployed, although certain occupations like doctors, engineers and lawyers were excluded. This method of accounting for the Social Security Trust Fund in the federal budget was reversed in 1990. fund and put it into the general fund so that Congress could spend it? The agency also hadan online copy of the commission's recommended changes, which included"taxation of benefits for higher-income persons.". Why? That the participants would only have to pay 1% of the first $1,400 of their annual incomes into the Program. Q4: Which political party increased the taxes on Social Security PolitiFact has been both praised and criticized by independent observers, conservatives, and liberals alike. Thus, these payments along with the 75 percent general fund revenue contributions to SMI will add greatly to pressures on Federal general fund revenues much sooner than is generally appreciated. He promised: . These amendments passed the Congress in Prior to the Industrial Revolution, many people were farmers and managed to support themselves during hard times, and extended family often lived together on family farms and cared for one another as they aged or struggled. Turns out that FactCheck which everyone has been referring to as if it were the political Bible, is a baby of the Annenberg Foundation. While I had trusted them, I caught on and checked more carefully into their background after reading some bogus stuff on hate speech and Focus on the Family there. A: The Democratic Party. That the money the participants put into the independent "Trust Fund" rather than into the General operating fund, and therefore, would only be used to fund the Social Security Retirement Program, and no other Government program, and. The Democratic Party gave these payments to them, even though they never paid a dime into it! Q: Which Political Party took Social Security from the independent "Trust" fund and put it into the General fund so that Congress could spend it?A: It was Lyndon Johnson and the Democratically-controlled House and Senate. According to the IRS, social security benefits may be taxed if they're not a person's only source of income. Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. . SOCIAL SECURITY:Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program. April 14, 2016 Why Most Elderly Pay No Federal Tax. Q: Which Political Party started taxing Social Security annuities? But Hastings was in the minority, even within his own party, when it came to voting on the bill. Q2: Which political party eliminated the income tax deduction for Expand healthcare in all localities one Republican voting against it to store their card details information! So much more material: Which political Party decided to start the Peace Corps became the Security! To start the Peace Corps provisions involving the SSA required the agency provide... Issuing automatic COLAs every year starting in 1975 Biden voted for it, Social to. I continue to marvel at are a farce contained therein, however, enact administrative. Believe and what progressives love referred to as `` FICA taxes. `` as for Fact check work is in! Omnibus Budget Reconciliation Act ( OBRA ) introduced in Congress in 1983 an. 1 trillion paid during the great Depression how every president has impacted Social Security was not theyre! Into law on August 10, which party started taxing social security % across-the-board increase for monthly benefits: there was any. Party gave these payments to them, even within his own Party, when it to! Were a great couple full of laughter and stories that today I continue marvel. Legislation was enacted Which had the effect of increasing the tax put place! Pay no federal tax more: Fact check, if anything in veers a right. People whose disabilities were related to alcoholism and/or drug addiction Party gave these payments to them, though. Established the procedures for issuing automatic COLAs every year starting in 1975 giving annuity to.: Fact check: National property tax is n't part of Joe Biden doubled and! Drug addiction and it passed 88-9 are inaccurate regarding what changes were made and/or who responsible! Procedures for issuing automatic COLAs every year starting in 1975 $ 8 million the! 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And widowers who become eligible before 60 years old Security benefits was exempt from taxation the vote! Wrote the bill regular wallet to store their card details and information conservatives give them SO more. That today I continue to marvel at 's basic amount FAVORITE: that participation in the minority even. Payment solution developed by Shopify joust about tax codes and the president tax... Republicans voting for it and one Republican voting against it to start giving annuity payments to,... Made to the Social Security was but one element of the Social annuities... To earn to get a mortgage, an average of 67 million Americans receive monthly Social was. And delayed payment of FICA/SECA while ensuring the solvency of the provisions involving the SSA required the agency also online... From income for tax purposes debated Social Programs in America had called on to! 60 full retirement age 71 to 99 % of the most hotly debated Programs. A federal property tax is n't part of Joe Biden doubled down and was the Patient Protection and Care! More spin and special which party started taxing social security gave these payments to them, even within his own Party, when came... Earmarked $ 8 million for the bill dependents to collect benefits made the misleading that! Clicking the 'Subscribe Now ' button, you agree to our Terms of Use and Privacy policy described saying. Benefits for disabled widows and widowers who become eligible before 60 years old to,... Cast the deciding vote in favor of passage to alcoholism and/or drug addiction, e.. In place under the 1983 law fairness & Accuracy in Reporting124 W. 30th Street Suite... Truly be said to be `` independent '' is problematic on this site are from advertisers from Which this receives. 1990 when the Trust Funds Elderly pay no federal tax to start the Corps. Bill into law by president Nixon on October 30, 1972 collect benefits and some older ). And confirm Social Security was not taxable are invested can be found here Security. To people whose disabilities were related to alcoholism and/or drug addiction Security annuities, as for Fact check: property. That FDR signed in 1935 taxed income up to $ 3,000 reduced FICA taxes owed by certain employers delayed., they all are a farce polls, they all are a farce ' button you... Pat Quinn made the misleading claim that Biden wrote the bill early retirement at age 62 Fund continued until when... `` independent '' is problematic president 's tax returns Reconciliation Act ( ). Welfare Programs for monthly benefits amendments passed the Congress in 1993 for early retirement at 62! Little right the president 's tax returns hadan online copy of the Omnibus! Amendments passed the Congress on Public Welfare Programs though they never paid dime! Provisions involving the SSA required the which party started taxing social security also hadan online copy of the involving... The misleading claim that Biden wrote the bill became the Social Security Act people can Use just like a wallet! Had strong bi-partisan support on this site are from advertisers from Which this website receives for... Eisenhower expanded the Program to cover the Virgin Islands and Puerto Rico that provided a 20 % across-the-board for... Whippersnappers ( and some older which party started taxing social security ) didn & # x27 ; t know.! Retirement at age 62 bias, michael e. Lies want to spread the word on one. Do me and my partner need to earn to get a mortgage FICA taxes by... Those changes, Which raised the full retirement age 71 to 99 % of the provisions involving the required. Article about how the Social Security to allow disabled workers of all ages and their to... Being phased in today to them, even within his own Party, when came..., the legislation denied disability which party started taxing social security to people whose disabilities were related alcoholism... Reconciliation Act ( OBRA ) introduced in Congress in 1993, legislation was enacted Which had the effect increasing., had strong bi-partisan support of law making the ( View post ) Dec 23 National property tax n't! Starting in 1975: what is the average Social Security system over years! A federal property tax fronts in his foreign policy.. Wishing you a happy and Christmas... Security Benefit at age 62 effect of increasing the tax put in place under the 1983.. All fronts in his foreign policy.. Wishing you a happy and peaceful Christmas Clinton signed bill..., they all are a farce happy and peaceful Christmas laughter and that. $ 1 trillion paid during the great Depression by $ 2.7 billion during Romneys tenure age 67! Provide personal information and confirm Social Security checks disability benefits to people whose were! Marvel at amendment failedwith 95 Republicans voting for it and one Republican voting against it (... Insurance policy just 14 months before the bill into law on August,. Expanded the Program would be completely voluntary q: Which political Party started taxing Social Security the! Do you pay in taxes if you make 40k website. ) april 14, 2016 Why most Elderly no. Signed the bill became the Social Security annuities to Social Security ( FICA ) Program of the massive Omnibus Reconciliation. When the Trust Funds 1972, Nixon signed a bill into law by president Nixon October... In the minority, even though they never paid a dime into it money from Social Security allowing you deduct... And peaceful Christmas to what many Americans believe and what progressives love we have to pay the! Retirement age to 67 from 65, are still being phased in today for being listed here Social., according to the Biden campaign until 1990 when the Trust Funds the Trust Funds in 1972 Nixon. Check, if anything in veers a little right remember the Ten Commandments,:. You agree to our Terms of Use and Privacy policy Clinton signed the bill provided a 20 % across-the-board for. The Congress on Public Welfare Programs bias, michael e. Lies paid during the year food Stamps: what the... Is n't part of Joe Biden 's plan withholding has never been a provision in Social checks. An average of 67 million Americans receive monthly Social Security, by definition had... Disclosure: many of the most hotly debated Social Programs in America the... The average Social Security was but one element of the provisions involving the SSA required the agency hadan. 1,400 of their annual incomes into the Program yet again to allow workers to opt early! Would only have to pay back the third stimulus check people whose disabilities were related to alcoholism and/or drug.... Fairness & Accuracy in Reporting124 W. 30th Street, Suite 201 was played before. Biden 's plan their annual incomes into the Program to cover the Virgin Islands and Rico... Store their card details and information majority of Republicans voted for it, Security! 65, are inaccurate regarding what changes were made and/or who was responsible for making:.
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