Many Ramones fans claim that the song was penned by Joey after Ramones' guitarist Johnny Ramone "stole" Joey's ex-girlfriend Linda from him, although he claims that he wrote the song years before the incident. The KKK supposedly refers, in an extremely exaggerated fashion, to Johnny Ramone's politically conservative views.
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What's awesome of course, is that even though they never spoke to one another again, Johnny Ramone PLAYED on this song and not only on the album, but probably more times than some bands have ever played in their lifetimes given the insane amount of touring the band had to do to survive. The idea of The Ramones was stronger than the individual Ramones.
In some way it's utterly numbing to imagine oneself in that kind of straightjacket. Tommy had an excellent idea, they all gave it life and if they had broken up after Rocket To Russia they would still have been influential as hell. Another perspective is that it was the endless grind and reiteration of the basic theme with hardly any variation that makes The Ramones truly great.