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Mon Apr 22, 2019, 07:53 PM

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



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Reply Medicare, Social Security Face Shaky Fiscal Futures, Report Shows (Original post)
appalachiablue Apr 22 OP
mobeau69 Apr 22 #1
LiberalArkie Apr 22 #2
TexasBushwhacker Apr 22 #9
Rebl2 Apr 22 #12
LiberalArkie Apr 22 #14
Rebl2 Apr 22 #16
DBoon Apr 23 #32
LiberalArkie Apr 23 #34
Turbineguy Apr 22 #3
PSPS Apr 22 #4
exboyfil Apr 22 #17
PSPS Apr 22 #18
Igel Apr 22 #21
walkingman Apr 22 #5
Hoyt Apr 22 #6
Honeycombe8 Apr 22 #7
TexasBushwhacker Apr 22 #8
PoindexterOglethorpe Apr 22 #10
sandensea Apr 22 #11
cstanleytech Apr 22 #13
Kashkakat v.2.0 Apr 22 #15
paleotn Apr 22 #19
BamaRefugee Apr 22 #20
pnwmom Apr 22 #22
DeminPennswoods Apr 22 #23
sarcasmo Apr 22 #25
sarcasmo Apr 22 #24
not fooled Apr 23 #26
Locrian Apr 23 #27
beachbum bob Apr 23 #28
bluedigger Apr 23 #29
meow2u3 Apr 23 #30
appalachiablue Apr 23 #33
IronLionZion Apr 23 #31
Maxheader Apr 23 #35

Response to appalachiablue (Original post)

Mon Apr 22, 2019, 07:58 PM

1. Well, she is an expert on fraud.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 08:00 PM

2. You know, I bet if every bit of income was taxed instead of having a cut off around 129K

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

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Response to LiberalArkie (Reply #2)

Mon Apr 22, 2019, 08:11 PM

9. No cap on Medicare

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.

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Response to LiberalArkie (Reply #2)

Mon Apr 22, 2019, 08:59 PM

12. You have

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

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Response to Rebl2 (Reply #12)

Mon Apr 22, 2019, 09:16 PM

14. Why shouldn't a person bringing in over a billion

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?

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Response to LiberalArkie (Reply #14)

Mon Apr 22, 2019, 09:39 PM

16. I agree with you

totally, unfortunately not likely to happen.

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Response to LiberalArkie (Reply #14)

Tue Apr 23, 2019, 11:20 AM

32. because it is almost never payroll income

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

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Response to DBoon (Reply #32)

Tue Apr 23, 2019, 04:04 PM

34. I agree, Steve Jobs was reportedly only paid $1 a month in payroll.

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.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 08:00 PM

3. Oh yes!

It's time to privatize and give the money to Wall Street.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 08:01 PM

4. Misuse of the term "insolvent" means this is laying groundwork for disbanding

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.

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Response to PSPS (Reply #4)

Mon Apr 22, 2019, 09:41 PM

17. 30% reduction is not slight

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

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Response to exboyfil (Reply #17)

Mon Apr 22, 2019, 09:50 PM

18. It's actually closer to 20% and, as I said, that's not "insolvent" and it can be easily fixed

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Response to PSPS (Reply #18)

Mon Apr 22, 2019, 10:22 PM

21. Might be easily fixed,

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.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 08:01 PM

5. It is time to acknowledge that our healthcare system has failed miserably and it IS time for

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!!

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 08:01 PM

6. Sarah Sanders is full of chit, but this is a real problem that simply taxing the rich won't solve.

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.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 08:04 PM

7. The Repubs' ideas to "protect" SS & Medicare is to privatize them, so they wither on the vine.

"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.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 08:07 PM

8. Medicare should require living wills and/or medical power of attorney

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.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 08:17 PM

10. What PSPS said.

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.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 08:34 PM

11. Lift the cap. That would take care of Social Security.

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.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 09:15 PM

13. One thing that might help would be to remove the cap on how much people are taxed per year as

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.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 09:19 PM

15. Dems need to be campaigning hard on strengthening/preserving the fundamentals like

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.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 10:13 PM

19. Strains the federal budget?

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.

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 10:15 PM

20. People WITHOUT SS and Medicare face even SHAKIER fiscal futures!

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 11:04 PM

22. Elizabeth Warren did a good job of explaining this. The problem is that the R's,

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

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 11:46 PM

23. Reports like this make me crazy

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.

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Response to DeminPennswoods (Reply #23)

Mon Apr 22, 2019, 11:50 PM

25. +1

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Response to appalachiablue (Original post)

Mon Apr 22, 2019, 11:50 PM

24. The GOP said cuts/theft were coming and now the fake reports start, Bloomberg with the first shot.

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

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Response to appalachiablue (Original post)

Tue Apr 23, 2019, 12:20 AM

26. Propaganda

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.

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Response to appalachiablue (Original post)

Tue Apr 23, 2019, 06:56 AM

27. but never a peep about "fiscal concern"

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

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Response to appalachiablue (Original post)

Tue Apr 23, 2019, 07:35 AM

28. easily solved

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Response to appalachiablue (Original post)

Tue Apr 23, 2019, 08:48 AM

29. It's a darn shame our government has no way to raise revenue.

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Response to appalachiablue (Original post)

Tue Apr 23, 2019, 08:50 AM

30. This is a crock and they know it

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.

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Response to meow2u3 (Reply #30)

Tue Apr 23, 2019, 12:03 PM

33. Yep, and unfortunately mainstream articles like this are

what too many people read and believe.

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Response to appalachiablue (Original post)

Tue Apr 23, 2019, 10:19 AM

31. The "fraud and abuse" is wealthy folks aren't paying enough in payroll taxes

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Response to appalachiablue (Original post)

Tue Apr 23, 2019, 05:55 PM

35. A report developed and approved by that lover of "entitlements"

mitch the bitch...



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

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