Medicare, Social Security Fix Not Easy

[auditor0007]

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.

 

[Oddball]

The currency will be collapsed before those Ponzi schemes are fixed.

 

[plt42]

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!

 

[auditor0007]

The currency will be collapsed before those Ponzi schemes are fixed.

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.

 

[auditor0007]

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!

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.

 

[plt42]

The real problem would be at what point is the cutoff?

Agreed... however, they manage to find a cut-off point for contributions to SS which they adjust annually. I think the think-tank economists could come up with a plausible "scale" on benefit eligibility. Granted, it would cause some really pissed off business owners but without the employees for whom they paid SS wages, they'd not be multi-millionaires or billionaires. Granted as well, the bar would have to be set high, perhaps determined on a "percent scale" taking into consideration the value of the dollar and adjusted as the current contribution cap.

It would not be an easy fix but... I just can't help but think it's doable. But what do I know. I'm only married to a retired economics professor; I'm not an economist.

 

[Sweet Willy]

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.

 

[ba1614]

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.

 

[Sweet Willy]

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.

We need more people like your grandfather.

 

[justabubba]

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

 

[Sweet Willy]

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

As usual, the wealthy don't pay their share. And they'll raise hell if they are asked to pay the same rate as the poor.

 

[auditor0007]

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

As usual, the wealthy don't pay their share. And they'll raise hell if they are asked to pay the same rate as the poor.

The only way I could support this is if there was one flat tax rate for all. The wealthy already pay the highest rates, and now you want to add another 12.5% to their rate? That is the net result when combining employer contribution. In addition to that, you would effectively reduce their salaries as employers would reduce their salaries by the amount of their share of the tax.

By doing this, big income earners would pay combined total taxes of around 60%. I'm not one of those large income earners, but even I think that is more than makes sense.

 

[Sweet Willy]

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

As usual, the wealthy don't pay their share. And they'll raise hell if they are asked to pay the same rate as the poor.

The only way I could support this is if there was one flat tax rate for all. The wealthy already pay the highest rates, and now you want to add another 12.5% to their rate? That is the net result when combining employer contribution. In addition to that, you would effectively reduce their salaries as employers would reduce their salaries by the amount of their share of the tax.

By doing this, big income earners would pay combined total taxes of around 60%. I'm not one of those large income earners, but even I think that is more than makes sense.

I agree that is too much. The problem is that the wealthy hide money. Send it offshore. It's a constant game of cat and mouse to try and get the share of taxes they owe. As they find loop holes and send money offshore, we have to raise taxes on what they can't hide in order to try and get close to them paying what they actually owe.

 

[plt42]

For the sake of this discussion regarding Social Security, we have to remove WH and Med from the equation.

Removing the SS cap on earnings is totally fair. The additional 6.2% paid by the employer on employees is the cost of doing business. Since the self employed currently pay 12.4% SS, consider the employers additional portion as the cost of having someone do the work for you.

Inequitabe as it may seem on the surface, those who've done the work and taken the risks necessary to build a highly successful business do not need the relative pittance they recieve from SS at retirement. Multiply that by the number of people in that position, and SS could begin to climb out of the hole... unless the damned government keeps borrowing it... a whole 'nuther story.

To me, that's a very simple fix though incomplete. While I understand the difficulty in redetermining benefits elgibility, I still contend it doable. The government has no problem in disqualifing for help on tuition or housing expenses.

I don't mean to say that it will be easy but it's better than standing still and bitching about it... but then maybe I'm the only one bitching! LOL

 

[wimpy77]

ss is an easy fix to add to the suggestions already made here, they will need to raise the retirement age. medicare is another story.

 

[KittenKoder]

Before anything can be fixed, the government has to stop raiding it for their own purposes, then repay it all back ... it should have been voluntary from the start with options of who gets to manage the money you put in instead of just the government.

 

[WillowTree]

For the sake of this discussion regarding Social Security, we have to remove WH and Med from the equation.

Removing the SS cap on earnings is totally fair. The additional 6.2% paid by the employer on employees is the cost of doing business. Currently, the max deduction at the cap is $6

sure is,, and said employer will have less employee's to make up the difference genius!

 

[mskafka]

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!

I agree 100%.

 

[mskafka]

I see it everyday:
Wealthy business owners on Medicaid with no medical history. (not sure how they pulled that one off)
People who live in million dollar mansions, retired, and have Medicare. (something is wrong with that picture.).

Physicians have been prosecuted for using medicaid benefits.

How is this happening? And if one retires a multi-millionare, do they really need social security or medicare benefits? No conscience.

 

[Agnapostate]

The currency will be collapsed before those Ponzi schemes are fixed.

Oh? I thought they were "pyramid schemes." Has WorldNutDaily recommended a new label?