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appalachiablue

(41,053 posts)
Mon Apr 22, 2019, 07:53 PM Apr 2019

Medicare, Social Security Face Shaky Fiscal Futures, Report Shows

Source: Bloomberg News/AP

3:59 PM. Washington (AP) - The financial condition of the government's bedrock retirement programs for middle- and working-class Americans remains shaky, with Medicare pointed toward insolvency by 2026, according to a report Monday by the government's overseers of Medicare and Social Security.

It paints a sobering picture of the programs, though it's relatively unchanged from last year's update. Social Security would become insolvent in 2035, one year later than previously estimated. Both programs will need to eventually be addressed to avert automatic cuts should their trust funds run dry. Neither President Donald Trump nor Capitol Hill's warring factions has put political perilous cost curbs on their to-do list.

The report is the latest update of the government's troubled fiscal picture. It lands in a capital that has proven chronically unable to address it. Trump has declared benefit cuts to the nation's signature retirement programs off limits and many Democratic presidential candidates are calling for expanding Medicare benefits rather than addressing the program's worsening finances.

Many on both sides actually agree that it would be better for Washington to act sooner rather than later to shore up the programs rather than wait until they are on the brink of insolvency and have to weigh more drastic steps. -More...


Read more: https://www.bloomberg.com/news/articles/2019-04-22/medicare-social-security-face-shaky-fiscal-futures



Regarding Medicare, WH press secretary Sarah Sanders said the report illustrates the need for "serious-minded" legislators to work with the administration on bipartisan changes to reduce costs, end fraud and abuse, and maintain the program for future generations.

She also criticized the Democrats' calls to expand Medicare claiming it would amount to a "total government takeover of health care" that cuts out private-sector options, endangers access to health care for seniors, and further strains the federal budget.

*New York Times, "Medicare and Social Security Funds Face Insolvency, Report Finds," April 22, 2019.
http://www.msn.com/en-us/news/us/social-security-and-medicare-funds-face-insolvency-report-finds/ar-BBWbBAm?ocidHPCOMMDHP15



35 replies = new reply since forum marked as read
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Medicare, Social Security Face Shaky Fiscal Futures, Report Shows (Original Post) appalachiablue Apr 2019 OP
Well, she is an expert on fraud. mobeau69 Apr 2019 #1
You know, I bet if every bit of income was taxed instead of having a cut off around 129K LiberalArkie Apr 2019 #2
No cap on Medicare TexasBushwhacker Apr 2019 #9
You have Rebl2 Apr 2019 #12
Why shouldn't a person bringing in over a billion LiberalArkie Apr 2019 #14
I agree with you Rebl2 Apr 2019 #16
because it is almost never payroll income DBoon Apr 2019 #32
I agree, Steve Jobs was reportedly only paid $1 a month in payroll. LiberalArkie Apr 2019 #34
Oh yes! Turbineguy Apr 2019 #3
Misuse of the term "insolvent" means this is laying groundwork for disbanding PSPS Apr 2019 #4
30% reduction is not slight exboyfil Apr 2019 #17
It's actually closer to 20% and, as I said, that's not "insolvent" and it can be easily fixed PSPS Apr 2019 #18
Might be easily fixed, Igel Apr 2019 #21
It is time to acknowledge that our healthcare system has failed miserably and it IS time for walkingman Apr 2019 #5
Sarah Sanders is full of chit, but this is a real problem that simply taxing the rich won't solve. Hoyt Apr 2019 #6
The Repubs' ideas to "protect" SS & Medicare is to privatize them, so they wither on the vine. Honeycombe8 Apr 2019 #7
Medicare should require living wills and/or medical power of attorney TexasBushwhacker Apr 2019 #8
What PSPS said. PoindexterOglethorpe Apr 2019 #10
Lift the cap. That would take care of Social Security. sandensea Apr 2019 #11
One thing that might help would be to remove the cap on how much people are taxed per year as cstanleytech Apr 2019 #13
Dems need to be campaigning hard on strengthening/preserving the fundamentals like Kashkakat v.2.0 Apr 2019 #15
Strains the federal budget? paleotn Apr 2019 #19
People WITHOUT SS and Medicare face even SHAKIER fiscal futures! BamaRefugee Apr 2019 #20
Elizabeth Warren did a good job of explaining this. The problem is that the R's, pnwmom Apr 2019 #22
Reports like this make me crazy DeminPennswoods Apr 2019 #23
+1 sarcasmo Apr 2019 #25
The GOP said cuts/theft were coming and now the fake reports start, Bloomberg with the first shot. sarcasmo Apr 2019 #24
Propaganda not fooled Apr 2019 #26
but never a peep about "fiscal concern" Locrian Apr 2019 #27
easily solved beachbum bob Apr 2019 #28
It's a darn shame our government has no way to raise revenue. bluedigger Apr 2019 #29
This is a crock and they know it meow2u3 Apr 2019 #30
Yep, and unfortunately mainstream articles like this are appalachiablue Apr 2019 #33
The "fraud and abuse" is wealthy folks aren't paying enough in payroll taxes IronLionZion Apr 2019 #31
A report developed and approved by that lover of "entitlements" Maxheader Apr 2019 #35

LiberalArkie

(15,686 posts)
2. You know, I bet if every bit of income was taxed instead of having a cut off around 129K
Mon Apr 22, 2019, 08:00 PM
Apr 2019

that there would not be a problem. But then who wants to hurts the upper middle class.

TexasBushwhacker

(20,044 posts)
9. No cap on Medicare
Mon Apr 22, 2019, 08:11 PM
Apr 2019

For Social Security, it's been suggested that there be an untaxed window from $130K to $250K (for example). That window could be expaned or shrunk based on projected needs.

They also need to make long term capital gains, above a certain amount, subject to SS and Medicare tax.

Rebl2

(13,311 posts)
12. You have
Mon Apr 22, 2019, 08:59 PM
Apr 2019

that right! At least make it a higher amount, say a few million dollars. That would shore up social security for a long time.

LiberalArkie

(15,686 posts)
14. Why shouldn't a person bringing in over a billion
Mon Apr 22, 2019, 09:16 PM
Apr 2019

Be subject to the tax? If it had been done back in Obama’s or Clinton’s term when we had both houses, think how much interest would have accumulated?

DBoon

(22,286 posts)
32. because it is almost never payroll income
Tue Apr 23, 2019, 11:20 AM
Apr 2019

Huge incomes come from investments, options, not from a salary

LiberalArkie

(15,686 posts)
34. I agree, Steve Jobs was reportedly only paid $1 a month in payroll.
Tue Apr 23, 2019, 04:04 PM
Apr 2019

Maybe it should be an item on the tax forms, "You paid in this amount on SS." You owe$$


When I got caught up on income taxes that I did not file. That is what they did.

I told them I was paid $1,000 a month and the totaled up my federal Fica and medicare.

PSPS

(13,512 posts)
4. Misuse of the term "insolvent" means this is laying groundwork for disbanding
Mon Apr 22, 2019, 08:01 PM
Apr 2019

What they really mean is that benefits would have to be reduced slightly and that's not "insolvent." It's easy to fix it now but we'll have to do something about the kremlin's contingent in congress first.

exboyfil

(17,857 posts)
17. 30% reduction is not slight
Mon Apr 22, 2019, 09:41 PM
Apr 2019

And the pay down of the Trust Fund out of the General revenue will also need to be addressed.

Igel

(35,197 posts)
21. Might be easily fixed,
Mon Apr 22, 2019, 10:22 PM
Apr 2019

but if you can only pay 79% of your creditors, that's insolvent.

Insolvent just means "can't pay your debts".

In 2009 some were saying that just removing the cap and keeping the rate fixed would solve the problem. Perhaps, but that was in 2009 and assumes the last 10 years' additional income. More recent estimates are that it would reduce but not eliminate the insolvency; for that, an additional (smallish) hike to the tax would also be needed. And that's assuming no actual increase in benefits.

There's an expense hump: After the baby boomers are mostly gone the expenses will decline, and at that point either contributions can be pared back or benefits increased.

walkingman

(7,512 posts)
5. It is time to acknowledge that our healthcare system has failed miserably and it IS time for
Mon Apr 22, 2019, 08:01 PM
Apr 2019

a "total government takeover of health care"! We need only to look at the rest of the developed nations and see how we can reduce the cost, provide for everyone, and stop the gouging of the multiple players in our system. Worshiping our for profit system is not helping anyone except the corporation that dominate our healthcare. Enough!!

 

Hoyt

(54,770 posts)
6. Sarah Sanders is full of chit, but this is a real problem that simply taxing the rich won't solve.
Mon Apr 22, 2019, 08:01 PM
Apr 2019

We'll end up kicking it down the road until there is no choice but to do something.

We better pray that GOPers aren't in office when that time comes.

Honeycombe8

(37,648 posts)
7. The Repubs' ideas to "protect" SS & Medicare is to privatize them, so they wither on the vine.
Mon Apr 22, 2019, 08:04 PM
Apr 2019

"Wither on the vine" is what a key Republican said in the '90s, speaking of "reforms" to Medicare. Reform it, so that it "withers on the vine."

Something needs to be done. The Democrats will have to be the ones to do it.

TexasBushwhacker

(20,044 posts)
8. Medicare should require living wills and/or medical power of attorney
Mon Apr 22, 2019, 08:07 PM
Apr 2019

forms be filled out when a person enrolls. Entirely too much money is spent prolonging lives needlessly. My father had a catastrophic stroke but lingered for 5 months because his wife just couldn't let go and they kept doing procedures that, I'm sure, cost well over $300K. I don't think he would have chosen that, but he never expressed his wishes.

PoindexterOglethorpe

(25,746 posts)
10. What PSPS said.
Mon Apr 22, 2019, 08:17 PM
Apr 2019

If no changes are made, the benefits paid out will need to be reduced a bit starting in 2035. That is not the definition of insolvent.

What I find especially discouraging is that younger people are buying into the idea that SS won't be there for them, and so they seem far too willing to acquiesce to it being dismantled. I'm 70 years old, and I can recall some of my coworkers, when we were 25, saying SS wouldn't be there for us. I told them then, and I'm telling young people now, if you can be persuaded to believe that horseshit, then you will have it taken from you.

SS has faced similar crises, and the solution in the past has been to raise the tax. Simply raising the current FICA to perhaps $500k of earned income would actually capture a huge amount.

sandensea

(21,529 posts)
11. Lift the cap. That would take care of Social Security.
Mon Apr 22, 2019, 08:34 PM
Apr 2019

And as for Medicare, restoring its power to negotiate prices would go a long way toward ensuring its solvency.

To say nothing of Medicare-for-All.

But of course the GOPee isn't interested in shoring either one up. They'll keep concern-trolling them, until they're both hopelessly insolvent.

Then it's back to the 19th century: if you're rich, great; and if not, commit suicide at 60.

cstanleytech

(26,080 posts)
13. One thing that might help would be to remove the cap on how much people are taxed per year as
Mon Apr 22, 2019, 09:15 PM
Apr 2019

really it only benefits the small % of people in this country that are wealthy at the long term expense of those that are not.
It might be a different story had the wealthy who control most companies and corporations had kept pace on paying workers a decent wage which they could actually invest for retirement but the majority decided a race to the bottom on wages was the way to go to make this country great again.

Kashkakat v.2.0

(1,752 posts)
15. Dems need to be campaigning hard on strengthening/preserving the fundamentals like
Mon Apr 22, 2019, 09:19 PM
Apr 2019

social security, medicare, public lands, etc.... make Repubs the party of defunding public services and giving away public assets to private corporations and ss funds to Wall Street.

Seems like a no-brainer.

Yeah we all know it, but they really need to be hit hard and put on the defensive.

Do that first, take care of the basics, so then when we hear things like "free college" its not going to sound so pie-in-the sky ridiculous.

paleotn

(17,781 posts)
19. Strains the federal budget?
Mon Apr 22, 2019, 10:13 PM
Apr 2019

Well, I can un-strain it.....

1978 - top tax bracket >= $792,236.91 is 70% Lets go back to something similar to the old tax rates.

and / or

Top capital gains tax rate for 2019 = 20% on gains of $488,851 or more. Tax capital gains at the same rates as income.

and / or

The US spends more in defense spending than the other top 7 combined. Spend more than just the next top 5 would save hundreds of billions of dollars each year and still adequately defend the country.

and / or

Social Security Tax Ceiling in 2019 = $132,900. Raise it to $250,000 or eliminate it entirely.

Better yet....

Medicare Part E for everyone. Slowly starve private insurance to death like a parasite. Combine Medicare and SS under the same umbrella, with a dedicated funding mechanism similar to FICA and Medicare taxes, with rates increasing on individuals and businesses as private insurance dies. In the end, we will all pay less than we currently do for Medicare taxes and health insurance premiums combined due to single payer being a far more efficient means of funding health care. We pay over twice as much ($10,209) per capita than Canada ($4,826) for health care with worse outcomes, due primarily to our for profit insurance system. Cutting that gap by 50% ($7.3K per year vs. $4.8K for Canada) would save Americans hundreds of billions per year.

pnwmom

(108,925 posts)
22. Elizabeth Warren did a good job of explaining this. The problem is that the R's,
Mon Apr 22, 2019, 11:04 PM
Apr 2019

decades ago, started to refuse to make any adjustments to changing conditions. But we need to, and the sooner the better.

DeminPennswoods

(15,246 posts)
23. Reports like this make me crazy
Mon Apr 22, 2019, 11:46 PM
Apr 2019

There is NO trust fund to "run dry". If revenues exceed outlays, the excess is, by law, invested in US Treasury bonds. When needed, those T-bills will be redeemed just like any other bond holder can do at any time.

Otherwise, social security and medicare are "pay as you go" programs. If or when outlays exceed revenue from payroll taxes, then social security and medicare would need funds from the general federal budget. A few years ago, I read an analysis saying this might be in the neighborhood of 2% of the federal budget. Just for comparison, DoD eats up 25% of the budget.

sarcasmo

(23,968 posts)
24. The GOP said cuts/theft were coming and now the fake reports start, Bloomberg with the first shot.
Mon Apr 22, 2019, 11:50 PM
Apr 2019

Last edited Tue Apr 23, 2019, 12:46 AM - Edit history (1)

not fooled

(5,791 posts)
26. Propaganda
Tue Apr 23, 2019, 12:20 AM
Apr 2019

to con us into going along with the destruction of SS and Medicare.

I don't trust anything from puke-controlled sources re these programs.

Locrian

(4,522 posts)
27. but never a peep about "fiscal concern"
Tue Apr 23, 2019, 06:56 AM
Apr 2019

with the billions spent on military industrial complex
2 trillion in tax give aways to the wealthy
bank bailouts
etc

meow2u3

(24,745 posts)
30. This is a crock and they know it
Tue Apr 23, 2019, 08:50 AM
Apr 2019

The idea of Social Security and Medicare going bankrupt is nothing but alarmist propaganda designed to turn the public against Social Security.
Social Security opponents have been trying to sabotage the program from its inception and this is an old lie.

Maxheader

(4,366 posts)
35. A report developed and approved by that lover of "entitlements"
Tue Apr 23, 2019, 05:55 PM
Apr 2019

mitch the bitch...



With paul ryan luvin every moment of the starve granny implications...

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