Medicare, Social Security Fix Not Easy

Discussion in 'Politics' started by auditor0007, May 25, 2009.

  1. auditor0007
    Offline

    auditor0007 Gold Member

    Joined:
    Oct 19, 2008
    Messages:
    12,566
    Thanks Received:
    2,255
    Trophy Points:
    255
    Location:
    Toledo, OH
    Ratings:
    +3,218
    Medicare, Social Security Fix Not Easy
    By TOM RAUM, AP
    posted: 15 HOURS 25 MINUTES AGOPrintShareText SizeAAAWASHINGTON (May 24) -

    There is no easy fix.
    Medicare and Social Security will go broke sooner rather than later because of the recession. With millions of baby boomers beginning to leave the work force, the cost of these popular benefit programs threatens to swamp the government in debt in the coming years if nothing is done.
    Congress and the White House are under increasing pressure to find a solution.
    One proposal gaining steam is a creating bipartisan commission to tackle the approaching insolvency of the government's three big "entitlement" programs: Social Security, Medicare and Medicaid.
    Everything would be on the table, including tax increases and benefit cuts. The commission would produce a "grand bargain" package of recommendations that Congress could accept or reject in total.

    Medicare, Social Security Fix Not Easy - AOL Money & Finance

    While the solutions for fixing these programs are not for the faint of heart, it would be nice to see our elected representatives, in a bipartisan effort, actually begin to work on finding a solution. These three programs are the biggest challenge facing the Federal Government, and it is time to finally address them as being the most important issues that we now face. There is no doubt that the final solution will have to involve a reduction of benefits as well as some type of tax increase. Reduction of benefits is the easy part, as that can be accomplished in most part by raising the age at which everyone begins to receive benefits. Raising taxes is a bit more problematic, but it will also certainly prove necessary. Limiting any tax increase though, is key. Raising taxes cannot be the sole solution. The bulk of the solution must come with a reduction in benefits.

    Whatever the final solution, the most important issue is that discussion begins and that Dems and Republicans actually work on this in a manner that leads to developing real answers, and not pie in the sky lies that will leave future generations holding the bag.
     
  2. Oddball
    Offline

    Oddball BANNED Supporting Member

    Joined:
    Jan 3, 2009
    Messages:
    41,428
    Thanks Received:
    8,397
    Trophy Points:
    0
    Location:
    Drinking wine, eating cheese, catching rays
    Ratings:
    +8,409
    The currency will be collapsed before those Ponzi schemes are fixed.
     
  3. plt42
    Offline

    plt42 A Constitutionalist

    Joined:
    Sep 3, 2008
    Messages:
    303
    Thanks Received:
    40
    Trophy Points:
    16
    Location:
    Gulf Coast of Texas
    Ratings:
    +40
    There's a cap on earnings contributions to SS... currently $106,500. Why not do away with the cap?

    If there's a cap on wage contribution, why not put a cap on eligibility for benefits? I mean... if you retire with a net worth of millions, you're pretty damned "socially secure". (My former employer falls into this category and collects a hefty SS check every month... which he needs like a hole in the head. And yes, I know that he has been a big contributor to the SS system but he contributed to build his business and stay in the corporate game.)

    Hey... it's only a thought!
     
    • Thank You! Thank You! x 1
  4. auditor0007
    Offline

    auditor0007 Gold Member

    Joined:
    Oct 19, 2008
    Messages:
    12,566
    Thanks Received:
    2,255
    Trophy Points:
    255
    Location:
    Toledo, OH
    Ratings:
    +3,218
    Pay as you go is not the same as a Ponzi scheme. However, you are correct if the payout is less in real dollars than what was paid in or if the payout exceeds the capacity of those paying in. This is why the biggest part of a solution must come from a reduction in benefits.
     
  5. auditor0007
    Offline

    auditor0007 Gold Member

    Joined:
    Oct 19, 2008
    Messages:
    12,566
    Thanks Received:
    2,255
    Trophy Points:
    255
    Location:
    Toledo, OH
    Ratings:
    +3,218
    I don't think an increase on the SS end would be a great idea. However, raising the Medicare percentage will almost certainly be necessary, and that is not capped. Only the SS portion of FICA is capped.

    As for denying benefits to those who "don't need it", I'm not sure that would be all that beneficial. The real problem would be at what point is the cutoff? For that to have any real effect, it would need to include a great many people. Next thing you know, we'd be denying benefits to anyone who had assets of over $1 million, and that's really not a lot of money. Just the cost of determing who is and who is not eligible to collect would end up wasting more money than it is worth.
     
  6. plt42
    Offline

    plt42 A Constitutionalist

    Joined:
    Sep 3, 2008
    Messages:
    303
    Thanks Received:
    40
    Trophy Points:
    16
    Location:
    Gulf Coast of Texas
    Ratings:
    +40
     
  7. Sweet Willy
    Offline

    Sweet Willy BANNED

    Joined:
    May 20, 2009
    Messages:
    2,637
    Thanks Received:
    180
    Trophy Points:
    0
    Ratings:
    +180
    Absolutely find a cut off for benefits. Not only for personal wealth but check the family too. The same as we do for college kids seeking asistance. If your children are wealthy, you don't need SS. That's probably where you stashed your cash anyway.
     
  8. ba1614
    Offline

    ba1614 Silver Member

    Joined:
    May 9, 2009
    Messages:
    3,812
    Thanks Received:
    875
    Trophy Points:
    98
    Location:
    Deep in the Northern Woods
    Ratings:
    +876
    And to think, it wasn't that long ago that my grandmother forced my grandfather to take the SS check when he became eligible, and he was far from wealthy,(that's why grandma made him take it), just didn't' feel right taking money he didn't earn.

    If you don't need it, don't take it and thank the good lord you had the ability to get yourself to a situation where you don't need it.
     
    • Thank You! Thank You! x 1
  9. Sweet Willy
    Offline

    Sweet Willy BANNED

    Joined:
    May 20, 2009
    Messages:
    2,637
    Thanks Received:
    180
    Trophy Points:
    0
    Ratings:
    +180
    We need more people like your grandfather.
     
  10. justabubba
    Offline

    justabubba Member

    Joined:
    Aug 14, 2008
    Messages:
    156
    Thanks Received:
    28
    Trophy Points:
    16
    Ratings:
    +28
    the ss fix is simple

    just remove the cap ($106,800) on taxable income

    each $1,000,000 in income will generate $124,000 in social security revenue which would otherwise not been paid
    that person earning $10 million should not benefit from the $1,226,757 which would otherwise be due without an income ceiling

    the low income individuals pay from their first dollar. there is no reason to exempt high earners from paying on their complete incomes ... especially recognizing that they enjoy the greatest ss payments upon retirement


    medicare's fix is not so simple. it is incumbent on the nation moving to a universal healthcare system, to fold in veterans care, medicare and medicaid to make it solvent - hopefully a single payer system will evolve
     
    • Thank You! Thank You! x 1

Share This Page