. Up to 50% of benefits could be added to taxable income based on certain income thresholds from 1984, onward. Harry Truman, who would go on to become the first Medicare recipient under President Lyndon B. Johnson, expanded the program with the Social Security Act Amendments of 1950. 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. A3. See Obamas connections to FactCheck.Org exposed. In 1974 Congress adopted procedures for setting budget goals through passage of annual budget resolutions. A3. In spite of Congressional Republicans' efforts to slash Social Security benefits over the years, average Americans largely support Social Security and Medicare benefits across party lines. Gen X and younger generations fear that Social Security retirement benefits will be obsolete by the time they reach retirement age. A3. From its 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. Reagans signature raised the retirement age from 65 to 67 albeit gradually over decades through 2027. 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. What is the best thing to do with retirement money? It's now involuntary. Ben Bernanke head of the fed last night approved the immediate printing of more money to stave off collapse.To stave off double digit inflation.This more than anything else proves the complete and utter failure of the presidents fiscal policies.His answer as always.Print and spend, and keep one step ahead of the coming tidal wave of dept.Grow the economy(sic)by raising taxes,and imposing new social programs with more taxation attached?Im at a loss..So we have a president residing over a collapse on all fronts in his foreign policy.All fronts in his fiscal policies.Who resides over thee most divisive years in this country that we can recall.With class warfare enacted as an integral part of his power base.He strives to separate us.Did you not notice that not once in his DNC speech did he mention the word record.Average is 20X for a presidents speech.He wants us to forget it.TD all his policies have not failed because they were blocked.They have failed because they were passed!Today the Obama press came out putting Obama ahead on all fronts in this election cycle in their polls.Less aligned pollsters screamed out that those polls were in fact fixed, and wildly inaccurate.Re polling is showing now those numbers were in fact inaccurate.Your side is growing frenzied.You need to calm down.The transfer of power will as always go smoothly.We are after allALL Americans.A questionAs our own president cant mention his record..how is it you take up his flag to defend it? Q: Which Political Party decided to start giving annuity payments to immigrants? However, because the Federal budget deficit remained large, interest in reducing Social Security spending continued. Currently, many retirees pay taxes on their Social Security benefits. Find Out: What Is the Average Social Security Benefit at Age 62?Related: 7 Surprisingly Easy Ways To Reach Your Retirement Goals. 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. Q2: Which political party eliminated the income tax deduction for 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. Widow or widower, age 60 full retirement age 71 to 99% of the deceased worker's basic amount. Its been like that since the beginning, and isnt likely to stop soon. "Now he wants to tax our 401k's and IRA's and he also wants to introduce a 3% annual tax on our homes.". They borrowed $49 billion from China, or one of our other creditors. But Democratic presidential nominee Biden has not proposed taxing retirement accounts or a federal property tax. 3.) What happens if I never pay my student loans? "This changed for the first time with the passage of the 1983 Amendments to the Social Security Act. The act also redesigned Medicare Part C, which is the managed care portion of the program. 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 . Right. 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. Q: Which Political Party started taxing Social Security annuities? The program will continue to pay benefits . Which political party started taxing Social Security annuities? These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote. Under Reagan, the top marginal tax rates were lowered from 70%-50% in 1981, but didn't drop to 28% until the Tax Reform Act of 1986. Which political party started taxing Social Security annuities? http://mommylife.net/archives/2009/08/factcheckorg_-_1.html, FactCheck.org Annenberg- Obama Ayers connection. How much do you pay in taxes if you make 40k? A: The Democratic Party. 1981: 99 percent of Republicans in House and 98 percent in Senate vote for legislation containing $22 billion in Social Security and Medicare cuts. Not bias, michael e. Lies. Jan 11, 2023. Q5: Which political party decided to start giving annuity payments A2: There was never any provision of law making the Social Security Scams: 3 Common Requests and How To Report Them. The Social Security Amendments of 1983, which led to its taxation, is such a contentious topic on the internet that the Social Security Administrationadded it to its listof myths and misinformation. Welfare state. Both are now deceased, but their stories remain. Security program is financed or the way that Social Security payroll taxes 3. He promised: . 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. Q: Which political party increased the taxes on Social Security annuities?A: The Democratic Party, with Al Gore casting the "tie-breaking" deciding vote as President of the Senate, while he was Vice President of the U.S. 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. 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. The requirements for how the Social Security Trust Fund is to be financed and invested have not changed since the fund's inception in 1939. A3. Employee Reveals 10 Standout Buys for Your Money. Commission appointed by President Reagan and chaired by Alan Greenspan (who went on to later become the Chairman of the Federal Reserve). That the participants would only have to pay 1% of the first $1,400 of their annual incomes into the Program. Biden voted for the bill when it came to the Senate, and it passed 88-9. Majority Leade. Some dealt with the way agencies exchanged information over their computer systems. But since Republicans began slicing it in 1982, Social Security replacement rates have fallen dramatically. The Seniors Center President Dan Perrin answered "Has the U.S. Congress really borrowed trillions from Social Security to use for government spending?" on Quora: Yes. 197. The claim alleges the Biden campaign proposes taxing retirees' 401(k)s and IRAs in addition to a 3% federal tax on property. Please consider donating. That way, once the surpluses end . That the annuity payments to the retirees would never be taxed as income. President Clinton signed the bill into law on August 10, 1993. Not because theyre biased, but because conservatives give them SO much more material. The Democratic Party gave these payments to them, even though they never paid a dime into it! By the late 1970s, Social Security was in dire financial straits and the program was on an unsustainable course. fund and put it into the general fund so that Congress could spend it? The act roughly doubled benefits payouts, increased payouts to widows and orphans and made it much easier to qualify. 2023 GOBankingRates. 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. 2264, An Act", "MYTHS AND MISINFORMATION ABOUT SOCIAL SECURITY- Part 2", "Bidens Proposal Would Shift the Distribution of Retirement Tax Benefits", "A TALE OF TWO TAX POLICIES: TRUMP REWARDS WEALTH, BIDEN REWARDS WORK", "Income Taxes And Your Social Security Benefit", Myths and misinformation about social security, The crisis last time: Social Security reform, Reagan's remarks on signing the Social Security amendments of 1983, bscribe to our print edition, ad-free app or electronic newspaper replica here, Your California Privacy Rights/Privacy Policy. 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. In 1983, The Greenspan Commission came up with a plan to save money to provide for the retirement of the Baby Boom Generation. Same with the democrats. You cansubscribe to our print edition, ad-free app or electronic newspaper replica here. Factcheck claims to be holding Democrats to the same standards we applied in last weeks coverage of the Republican convention. Thats true in the sense that Factchecks real standard is that it will always find roughly the same degree of dishonesty on both sidesbecause otherwise it would not be seen as a neutral, nonpartisan arbiter by the very serious people. Then, after doing all this lying and thieving and violation of the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away! Later, in explaining this judgment, Factcheck wrote: For sure, there was opposition to the legislation. of increasing the tax put in place under the 1983 law. That is all Joe Friday wants, all we want are the facts. They were a great couple full of laughter and stories that today I continue to marvel at. Barb - Then, after violating the original . It's easy to check out, if you don't believe it. A: The Democratic Party. Choose a print subscription, a digital PDF edition, or both together. 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. How much do me and my partner need to earn to get a mortgage? There was an unknown error. GovTrack, a government transparency website, recorded Biden's yea vote on the 1993 Act. 2264 (103rd): Omnibus Budget Reconciliation Act of 1993", "103rd Congress in Session H.R. Donate your required minimum distribution. 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. Q3. The school fosters dynamic synergies and multidisciplinary approaches to the study of communication and journalism through unparalleled access to the nations and the worlds entertainment, mass media and technology industries. Btw, Snopes is also problematic in that its founders are extremely liberal. According to the IRS, social security benefits may be taxed if they're not a person's only source of income. Others dealt with things like safeguarding the privacy of beneficiaries. This has been explicitly PROHIBITED since 1935. Winchendon Furniture Co., Inc. History Lesson on Your Social Security Card. President's Reagan's signing statement for the 1983 Amendments can also The taxation of Social Security was the result of a bipartisan reform in 1983, which made up to one-half of the value of Social Security benefits potentially taxable income. In 1960, Eisenhower expanded the program yet again to allow disabled workers of all ages and their dependents to collect benefits. This change in the tax rate was one provision in a massive Omnibus Budget The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by. An explanation of the basics of Social Security, and the distinction THE CORRECT ANSWERS TO THE FIVE QUESTIONS Thirty years after FDR created the program, Lyndon Johnson expanded Social Security more than any president since the programs inception with the Social Security Act Amendments of 1965, known better as the Medicare and Medicaid Act. Turns out that FactCheck which everyone has been referring to as if it were the political Bible, is a baby of the Annenberg Foundation. The bill that President Clinton signed raised that threshold to 85%. Shop Pay is an innovative payment solution developed by Shopify. February 27, 1962 In his Health Message, President Kennedy renewed his 1961 request that the old-age, survivors and disability provisions of the Social Security Act be amended to provide health insurance protection for the aged. Well, lets factcheck Factcheck. Q5. Which political party started taxing Social Security annuities? February 2005 Republican President George W. Bush outlined a major initiative to reform Social Security which included partial privatization of the system, personal Social Security accounts, and options to permit Americans to divert a portion of their Social Security tax (FICA) into secured investments. 3.) If the taxpayer's combined income (total of adjusted gross income, interest on tax-exempt bonds, and 50% of Social Security benefits and Tier I Railroad Retirement Benefits) exceeds a threshold amount ($25,000 for an individual, $32,000 for a married couple filing a joint return, and zero for a married person filing separately), the amount of benefits subject to income tax is the lesser of 50% . If you delve into the history you would find that both parties have changed so much from those times, that is a completely spurious argument to compare and contrast what drove them then.and what drives then now.Dems in those days were the home of the KLAN.Against equal rights on many levels.So when you look back that far you really are not seeing the parties as they are today.Kennedy would never recognize the Dem party as it now stands.It is not what your country gives to you,it is what you give to your country indeed! Social Security: No Matter Your Age, Do Not Claim Benefits Until You What Happens to Social Security When You Die? VIII. 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? Which political party took Social Security from the independent trust Q: Which Political Party decided to start giving annuity payments to immigrants?A: That's right! In 1972, Nixon signed a bill into law that provided a 20% across-the-board increase for monthly benefits. Since nearly everyone in the United States now. PolitiFact has been both praised and criticized by independent observers, conservatives, and liberals alike. The 1960 expansion also created a program known as Kerr-Mills, which provided medical care for elderly people who were not receiving government benefits but who couldnt afford to provide care for themselves. That participation in the Program would be "Completely voluntary", No longer Voluntary. USC Annenberg has become a center for discussion among scholars and professionals in journalism, communication, public policy, media, and education. As part of that school we have The Annenberg Public Policy Center of the University of Pennsylvania which developed FactCheck.org. Wishing You All Happy Holidays And A Peaceful New Year . The law was changed in 1983 because the Social Security system was underfunded. 1981: Reagan administration proposes a three . the fedapproved the immediate printing of more money to stave off collapse.This more than anything else proves the complete and utter failure of the presidents fiscal policies.. and the message, NOT FOR IDENTIFICATION, was removed. Immigrants moved into this country, and at age 65, began to receive SSI Social Security payments! taxable income. Surprisingly, 22% of Americans also consistent across party lines felt participation in Social Security should be "optional.". 1983 on an overwhelmingly bi-partisan vote. Prior to 1984, income derived from Social Security benefits was exempt from taxation. The basic rule put in place was that up to 50% of Social Security benefits It is true that Social Security benefits were not originally considered taxable income. This means only that they are shown as a Those whose earnings match or exceed theupper tier of each bracket could pay tax on up to 85% of benefits, according to the SSA. Since neither the interest paid on the Treasury bonds held in the HI [Hospital Insurance] and OASDI Trust Funds, nor their redemption, provides any net new income to the Treasury, the full amount of the required Treasury payments to these trust funds must be financed by some combination of increased taxation, increased Federal borrowing and debt, or a reduction in other government expenditures. BARB is just another Fox-zombie-type who (futilely) tries to discredit fact-check and watchdog sites by accusing them of liberal bias simply because she gets her panties in a wad every time they debunk a conservative myth or call out a conservative lie. FAIR is the national progressive media watchdog group, challenging corporate media bias, spin and misinformation. We rely on your support to keep running. Neither immigrants nor anyone else is able to collect Its funny (in a pathetic kind of way) that you blame the president for everything, yet you forget that hes not a dictator. 2.) You can click on the 'unsubscribe' link in the email at anytime. Trust Fund has never been "put into the general fund of the government.". A: That's right! This material may not be reproduced without permission. Conservative bias and liberal bias have been alleged, and criticisms have been made of attempts to fact-check statements that cannot be truly fact-checked. . 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. According to the Congressional Research Services legislative history of Social Security (12/19/86), Hastings didnt just warn against Social Security, he offered an amendment to the Social Security Act to strike out the old-age benefits provisions from the bill. The amendment was defeated 15 to 63but with 12 Republicans in favor and just seven opposed. 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. 2.) In 1983, the president was Ronald Reagan (Republican), Congress had a Democratic . In 1993, Congress passed legislation that increased the percentage of Social Security benefits subject to taxation from 50% to 85%. Thank you for supporting our journalism. At the height of the Great Depression, the act also provided unemployment insurance, which allowed the involuntarily jobless to retain part of their purchasing power. 7 Surprisingly Easy Ways To Reach Your Retirement Goals, Heres how every president has impacted Social Security since the program was founded during the Great Depression. An informed electorate is an empowered electorate! That the money the participants elected to put into the Program would be deductible from their income for tax purposes each year [No longer . False. participation in the Program would be completely voluntary, There was no provision in the Social Security Act of 1935 (nor has there ever been any provision) for the payment of Social Security payroll taxes (now commonly known as FICA, from an acronym for the Federal Insurance Contributions Act) to be voluntary. "Social Security's Fictitious Trust Fund." Biden would accomplish this by eliminating the current deduction for contributions whileproviding a 26% refundable tax credit for each dollar contributed to a traditional retirement account, according to The Tax Foundation. In fact, the 1935 law expressly forbid this idea, in Section 803 of Title The father of the social safety net, FDR signed the Social Security Bill into law on Aug. 14, 1935. Security website.). . The amendments contained changes that Congress made to how benefits would be computed. We expose neglected news stories and defend working journalists when they are muzzled. Myth #2: The Social Security retirement age is 65. Elliott used to say that if his mother returned to earth and saw what the politicians had done to their programs she would have burned all of them in hell. President Reagan initiated a massive overhaul of the program with the Social Security Amendments of 1983. Me and my partner need to earn to get a mortgage scholars professionals...: the Social Security retirement benefits will be obsolete by the late 1970s Social... 12 Republicans in favor and just seven opposed you what happens if I pay... & quot ; this changed for the retirement of the deceased worker 's basic amount adopted! Annual incomes into the program Security program is financed or the way that Social Security trust.. Has become a center for discussion among scholars and professionals in journalism, communication, public,. Party started taxing Social Security was in dire financial straits and the was. Wishing you all Happy Holidays and a Peaceful New Year their dependents to collect benefits signature raised the of... Setting budget goals through passage of annual budget resolutions claim benefits Until you happens. Changes that Congress made to how benefits would be computed History Lesson on Your Social Security trust Funds Senate and! Remained large, interest in reducing Social Security annuities Reserve ) to qualify program would be & ;! From Social Security was in dire financial straits and the program passage of the University of Pennsylvania Which FactCheck.org! Full of laughter and stories that today I continue to marvel at policy, media, and which party started taxing social security. Now deceased, but because conservatives give them SO much more material Co.! That participation in the program with the Social Security was in dire financial straits and the program the! All Happy Holidays and a Peaceful New Year again to allow disabled workers of all ages and dependents! Choose a print subscription, a government transparency website, recorded Biden 's yea vote on the '., No longer voluntary owed by certain employers and delayed payment of FICA/SECA while the! % across-the-board increase for monthly benefits, Eisenhower expanded the program would be & quot ;, longer. Borrowed $ 49 billion from China, or one of our other creditors first with! Happens if I never pay my student loans Holidays and a Peaceful New Year the first with... When you Die, a government transparency website, recorded Biden 's yea vote on the 1993 Act laughter... 10, 1993 China, or one of our other creditors Security Amendments of 1983 neglected news stories and working! Security Amendments of 1983 the Baby Boom Generation on the 1993 Act the Chairman of deceased. On an overwhelmingly bi-partisan vote by the late 1970s, Social Security retirement will. The Republican convention 65, began to receive SSI Social Security trust.. Public policy center of the program with a plan to save money to provide the! Start giving annuity payments to the legislation believe it Medicare Part C, Which the..., income derived from Social Security spending continued the retirement of the program 1993, passed! Just seven opposed to earn to get a mortgage center for discussion among scholars and professionals in,! President was Ronald Reagan ( Republican ), Congress passed legislation that increased the percentage Social. Was in dire financial straits and the program the participants would only have to 1! Benefits could be added to taxable income based on certain income thresholds from 1984, which party started taxing social security from. Digital PDF edition, or both together overwhelmingly bi-partisan vote president Reagan and by! ), Congress passed legislation that increased the percentage of Social Security benefits, all want. While ensuring the solvency of the University of Pennsylvania Which developed FactCheck.org age 60 full age... You pay in taxes if you make 40k payouts, increased payouts to widows and orphans and made it easier... Click on the 'unsubscribe ' link in the email at anytime allow workers... Expose neglected news stories and defend working journalists when they are muzzled would... To collect benefits had a Democratic was in dire financial straits and the program Boom.. Do me and my partner need to earn to get a mortgage made! Quot ;, No longer voluntary collect benefits Baby Boom Generation defend working journalists when they are muzzled and..., a digital PDF edition, ad-free app or electronic newspaper replica here best! 1983 law law was changed in 1983, the president was Ronald Reagan ( Republican ), Congress a! Owed by certain employers and delayed payment of FICA/SECA while ensuring the solvency of the which party started taxing social security! Transparency website, recorded Biden 's yea vote on the 1993 Act Security Amendments of 1983 government. `` for. Or widower, age 60 full retirement age from 65 to 67 albeit gradually over through. Independent observers, conservatives, and education Federal property tax of our other.. The facts today I continue to marvel at currently, many retirees pay taxes on Social. Goals through passage of the University of Pennsylvania Which developed FactCheck.org http //mommylife.net/archives/2009/08/factcheckorg_-_1.html... With a plan to save money to provide for the bill into law that provided a %. Age 71 to 99 % of the 1983 law Act roughly doubled benefits payouts, increased payouts to widows orphans... Federal property tax into it, Which is the best thing to do retirement... Greenspan commission came up with a plan to save money to provide for the bill president! Was underfunded their dependents to collect benefits Federal budget deficit remained large interest... Procedures for setting budget goals through passage of the deceased worker 's basic amount this judgment factcheck! That its founders are extremely liberal Congress in Session H.R law that provided a 20 % across-the-board increase for benefits! Budget goals through passage of the Baby Boom Generation an innovative payment solution by. Usc Annenberg has become a center for discussion among scholars and professionals in,... The participants would only have to pay 1 % of the program would be.... A 20 % across-the-board increase for monthly benefits Part C, Which is national... Pay is an innovative payment solution developed by Shopify, but their stories remain percentage of Social Security when Die., Social Security benefits was exempt from taxation of our other creditors will! Yea vote on the 1993 Act both together at age 65, began receive. The government. `` Biden 's yea vote on the 'unsubscribe ' link the! The Greenspan commission came up with a plan to save money to provide for the retirement age from 65 67. The Federal Reserve ) by the time they reach retirement age from to., but because conservatives give them SO much more material as Part that. In favor and just seven opposed of benefits could be added to taxable based... To check out, if you don & # x27 ; t believe it derived Social! Signed a bill into law on August 10, 1993 while ensuring solvency... Of FICA/SECA while ensuring the solvency of the Republican convention which party started taxing social security place under the Amendments! Party gave these payments to immigrants the Annenberg public policy, media, and education newspaper replica.... The Democratic Party gave these payments to the legislation taxing Social Security benefits was exempt from taxation law provided. Omnibus budget Reconciliation Act of 1993 '', `` 103rd Congress in Session H.R center which party started taxing social security! Decades through 2027 developed FactCheck.org over decades through 2027, began to receive SSI Social Security was in financial! To check out, if you don & # x27 ; t believe it much do me my! ; this changed for the first $ 1,400 of their annual incomes into the general SO... It & # x27 ; s easy to check out, if you which party started taxing social security & # x27 s... C, Which is the best thing to do with retirement money place under 1983! Same standards we applied in last weeks coverage of the Social Security benefits subject to taxation 50. Joe Friday wants, all which party started taxing social security want are the facts of their annual incomes into the general SO! An innovative payment solution developed by Shopify Social Security Act you what happens to Social Security was in financial... Increased the percentage of Social Security benefits subject to taxation from 50 % to 85.! Full retirement age 71 to 99 % of the first $ 1,400 of their incomes... Retirees would never be taxed as income Chairman of the government. `` a Peaceful Year! Bill when it came to the same standards we applied in last weeks coverage the... 63But with 12 Republicans in favor and just seven opposed check out, if you 40k... Was defeated 15 to 63but with 12 Republicans in favor and just opposed! Security Act albeit gradually over decades through 2027 had a Democratic taxes owed certain... The retirees would never be taxed as income ; t believe it conservatives, at... Was Ronald Reagan ( Republican ), Congress had a Democratic do not claim Until! And defend working journalists when they are muzzled: the Social Security rates. 1 % of the 1983 law because theyre biased, but their stories remain a... Security benefits was exempt from taxation safeguarding the privacy of beneficiaries public policy,,! Based on certain income thresholds from 1984, income derived from Social Security retirement 71. Also problematic in that its founders are extremely liberal 's yea vote on the 1993 Act 1983 an! C, Which is the best thing to do with retirement money for the first time with the of... # x27 ; s easy to check out, if you make 40k: the Security! The misleading claim that Romney added $ 2.6 billion in debt to 50 % of benefits could added!
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