Nelson J. and Victoria A. Secretario - Page 4

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          petitioners appear to argue that the imposition of Social                   
          Security taxes upon them is unconstitutional because there is no            
          assurance that Social Security taxes paid by petitioners in the             
          past will be available, as "promised" by the Government, to be              
          paid out as future retirement benefits.                                     
               The constitutionality of the Social Security system and its            
          limited exceptions have been upheld repeatedly and are not                  
          subject to further dispute.  Palmer v. Commissioner, 52 T.C. 310,           
          312-313 (1969); see United States v. Lee, 455 U.S. 252 (1982);              
          Patterson v. Commissioner, 740 F.2d 927 (11th Cir. 1984), affg.             
          T.C. Memo. 1983-655; Jaggard v. Commissioner, 582 F.2d 1189 (8th            
          Cir. 1978), affg. T.C. Memo. 1978-78; Hughes v. Commissioner, 81            
          T.C. 683 (1983).  This conclusion also extends to the self-                 
          employment taxes imposed by section 1401, here in issue.  Cain v.           
          United States, 211 F.2d 375 (5th Cir. 1954).                                
               There is no legal authority supporting petitioners'                    
          position.  A claim that taxpayers need not pay self-employment              
          tax because the Social Security fund may be insolvent and,                  
          therefore, may be unable to pay benefits was specifically                   
          rejected in our decisions in Diffley v. Commissioner, T.C. Memo.            
          1984-372, and Fiorito v. Commissioner, T.C. Memo. 1981-576, affd.           
          without published opinion 720 F.2d 682 (7th Cir. 1983).                     

          1994, constitutes net self-employment income.                               

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