The Bad News on Entitlements Piles Up - The Credit Card Runs Out

[Sun Devil 92]

https://www.realclearpolicy.com/art...bad_news_on_entitlements_piles_up_110670.html

First: Social Security:

It won't go "broke". It will simply cut benefits by 25% in 2034 (sixteen years from now). Grandma living on the average payment of 1100 per month is totally fucked.

The Social Security report estimates the program will run out of reserves in 2034, after which benefits would have to be reduced by about 25 percent to keep spending within available annual revenue. Over 75 years, Social Security has an unfunded liability of $13.2 trillion. Restoring permanent solvency to the program would require raising the payroll tax rate immediately from today’s combined employer-employee rate of 12.4 percent of taxable payroll to 15.2 percent. Alternatively, Social Security benefits would need to be cut on a permanent basis by about 17 percent.

Second: Medicare:

The financial hole for Medicare is even deeper. The Medicare hospital insurance trust fund will run out of reserves in 2026. Last year, the trustees expected the program’s reserves to last until 2029. Medicare has a second trust fund, for physician and outpatient services and for prescription drugs, that is permanently “solvent” because it has an unlimited tap on the general fund of the Treasury. What this really means is that premiums paid by the beneficiaries will cover only about 25 percent of program costs; the rest of the spending is unfinanced. Income and corporate taxes fall far short of what is needed to cover these costs along with the rest of the government’s obligations. Medicare’s overall unfunded liability over 75 years is more than $37 trillion.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Social Security was never about being a retirement program and yet many people see it that way. How sad. The poor won't get as much as the rich. O.K. by me...as I have paid a hell of a lot into the system (maxed out these past ten years). Still the intent does not seem to be there to really be security for the poor.

But, back when the left wing passed these programs and passed cost down the road.....they knew this day would come. And they thought it would take care of itself.

Look at Medicare. Only 25% of costs paid by beneficiaries.

That is left wing math for you.

Fuck over our kids so we can be popular and make the elderly a dependent class.

Great job.

 

[MarathonMike]

Not only do you have the inverted pyramid of taxpayers shrinking and beneficiaries ballooning, you also have people receiving many times the amount they paid into the system. Who needs the stock market when you have good old Uncle Sam printing money? Hell all you have to do is put in a handful of years to earn your minimum "points" and you have a steady stream of checks for however long you live in retirement. What could go wrong with a system like that?

 

[Sun Devil 92]

Not only do you have the inverted pyramid of taxpayers shrinking and beneficiaries ballooning, you also have people receiving many times the amount they paid into the system. Who needs the stock market when you have good old Uncle Sam printing money? Hell all you have to do is put in a handful of years to earn your minimum "points" and you have a steady stream of checks for however long you live in retirement. What could go wrong with a system like that?

They will find out in about 16 years.

When the bottom part of the system gets forced from poverty payments to not-even-able-to-make poverty payments it's going to get real interesting.

People who have paid like hell into the system will likely get means tested off which is going to be a fucking travesty.

But travesty describes these two programs.

 

[LuckyDuck]

Well, the baby boomers are dying off.

 

[Sun Devil 92]

Well, the baby boomers are dying off.

Not yet they aren't and the actuarials take all that into account anyway.

2034.....25% cut. The poor who get the low end payments can bend over and kiss their asses good-bye.

 

[TomParks]

I expect them to remove the cap and reduce benefits based on income for SS

 

[Sun Devil 92]

I expect them to remove the cap and reduce benefits based on income for SS

Removing the CAP is O.K. by me...as long as they compensate them proportionately.

Reducing benefits based on means testing is total fuckover. I'd fight it all the way.

 

[EvilCat Breath]

It is more important than ever to keep democrats out of government.

 

[TomParks]

I expect them to remove the cap and reduce benefits based on income for SS

Removing the CAP is O.K. by me...as long as they compensate them proportionately.

Reducing benefits based on means testing is total fuckover. I'd fight it all the way.

It always seems to happen doesn't it? In this country you better be dirt poor or rich because the middle always gets the shaft

 

[Sun Devil 92]

I expect them to remove the cap and reduce benefits based on income for SS

Removing the CAP is O.K. by me...as long as they compensate them proportionately.

Reducing benefits based on means testing is total fuckover. I'd fight it all the way.

It always seems to happen doesn't it? In this country you better be dirt poor or rich because the middle always gets the shaft

The problem is that S.S. has always fucked over the poor. I know people who are poor and get $700 a month. They have no savings. It's pathetic. They now live out of the country and still don't have much of a life.

 

[Sun Devil 92]

I noticed the left steered way clear of this one.

 

[martybegan]

https://www.realclearpolicy.com/art...bad_news_on_entitlements_piles_up_110670.html

First: Social Security:

It won't go "broke". It will simply cut benefits by 25% in 2034 (sixteen years from now). Grandma living on the average payment of 1100 per month is totally fucked.

The Social Security report estimates the program will run out of reserves in 2034, after which benefits would have to be reduced by about 25 percent to keep spending within available annual revenue. Over 75 years, Social Security has an unfunded liability of $13.2 trillion. Restoring permanent solvency to the program would require raising the payroll tax rate immediately from today’s combined employer-employee rate of 12.4 percent of taxable payroll to 15.2 percent. Alternatively, Social Security benefits would need to be cut on a permanent basis by about 17 percent.

Second: Medicare:

The financial hole for Medicare is even deeper. The Medicare hospital insurance trust fund will run out of reserves in 2026. Last year, the trustees expected the program’s reserves to last until 2029. Medicare has a second trust fund, for physician and outpatient services and for prescription drugs, that is permanently “solvent” because it has an unlimited tap on the general fund of the Treasury. What this really means is that premiums paid by the beneficiaries will cover only about 25 percent of program costs; the rest of the spending is unfinanced. Income and corporate taxes fall far short of what is needed to cover these costs along with the rest of the government’s obligations. Medicare’s overall unfunded liability over 75 years is more than $37 trillion.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Social Security was never about being a retirement program and yet many people see it that way. How sad. The poor won't get as much as the rich. O.K. by me...as I have paid a hell of a lot into the system (maxed out these past ten years). Still the intent does not seem to be there to really be security for the poor.

But, back when the left wing passed these programs and passed cost down the road.....they knew this day would come. And they thought it would take care of itself.

Look at Medicare. Only 25% of costs paid by beneficiaries.

That is left wing math for you.

Fuck over our kids so we can be popular and make the elderly a dependent class.

Great job.

You also need to take into account the other impact with SS. For decades any "surplus" was turned into special government bonds, which basically are IOU's given to SS by the federal government and the $$ was put directly into the federal budget.

Now, not only are the feds losing that cash addition, they now need to pay off the IOU's to cover SS's red ink.

Double whammy time.

 

[blastoff]

https://www.realclearpolicy.com/art...bad_news_on_entitlements_piles_up_110670.html

First: Social Security:

It won't go "broke". It will simply cut benefits by 25% in 2034 (sixteen years from now). Grandma living on the average payment of 1100 per month is totally fucked.

The Social Security report estimates the program will run out of reserves in 2034, after which benefits would have to be reduced by about 25 percent to keep spending within available annual revenue. Over 75 years, Social Security has an unfunded liability of $13.2 trillion. Restoring permanent solvency to the program would require raising the payroll tax rate immediately from today’s combined employer-employee rate of 12.4 percent of taxable payroll to 15.2 percent. Alternatively, Social Security benefits would need to be cut on a permanent basis by about 17 percent.

Second: Medicare:

The financial hole for Medicare is even deeper. The Medicare hospital insurance trust fund will run out of reserves in 2026. Last year, the trustees expected the program’s reserves to last until 2029. Medicare has a second trust fund, for physician and outpatient services and for prescription drugs, that is permanently “solvent” because it has an unlimited tap on the general fund of the Treasury. What this really means is that premiums paid by the beneficiaries will cover only about 25 percent of program costs; the rest of the spending is unfinanced. Income and corporate taxes fall far short of what is needed to cover these costs along with the rest of the government’s obligations. Medicare’s overall unfunded liability over 75 years is more than $37 trillion.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Social Security was never about being a retirement program and yet many people see it that way. How sad. The poor won't get as much as the rich. O.K. by me...as I have paid a hell of a lot into the system (maxed out these past ten years). Still the intent does not seem to be there to really be security for the poor.

But, back when the left wing passed these programs and passed cost down the road.....they knew this day would come. And they thought it would take care of itself.

Look at Medicare. Only 25% of costs paid by beneficiaries.

That is left wing math for you.

Fuck over our kids so we can be popular and make the elderly a dependent class.

Great job.

Yes, a very good job brought to us by our professional political class of representatives of both parties who’ve worked diligently these past many many decades to get us where we are today.

Which is the main reason I was with Trump from day one. An outsider couldn’t possibly do any worse was how I looked at it.

 

[Sun Devil 92]

You'll notice the left has nothing to say about this.

They are the reasons they have this to begin with.

 

[Dont Taz Me Bro]

Well, the baby boomers are dying off.

Thank God. They ruined our country

 

[LuckyDuck]

Well, the baby boomers are dying off.

Thank God. They ruined our country

What has ruined not only our country, but the planet as a whole, was:
1. The creation of antibiotics.
2. The refusal to refrain from spitting out too many offspring, which can be primarily pinned on religions.
3. The burning of fossil fuels, especially via automobiles.
4. Deforestation.

 

[WheelieAddict]

https://www.realclearpolicy.com/art...bad_news_on_entitlements_piles_up_110670.html

First: Social Security:

It won't go "broke". It will simply cut benefits by 25% in 2034 (sixteen years from now). Grandma living on the average payment of 1100 per month is totally fucked.

The Social Security report estimates the program will run out of reserves in 2034, after which benefits would have to be reduced by about 25 percent to keep spending within available annual revenue. Over 75 years, Social Security has an unfunded liability of $13.2 trillion. Restoring permanent solvency to the program would require raising the payroll tax rate immediately from today’s combined employer-employee rate of 12.4 percent of taxable payroll to 15.2 percent. Alternatively, Social Security benefits would need to be cut on a permanent basis by about 17 percent.

Second: Medicare:

The financial hole for Medicare is even deeper. The Medicare hospital insurance trust fund will run out of reserves in 2026. Last year, the trustees expected the program’s reserves to last until 2029. Medicare has a second trust fund, for physician and outpatient services and for prescription drugs, that is permanently “solvent” because it has an unlimited tap on the general fund of the Treasury. What this really means is that premiums paid by the beneficiaries will cover only about 25 percent of program costs; the rest of the spending is unfinanced. Income and corporate taxes fall far short of what is needed to cover these costs along with the rest of the government’s obligations. Medicare’s overall unfunded liability over 75 years is more than $37 trillion.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Social Security was never about being a retirement program and yet many people see it that way. How sad. The poor won't get as much as the rich. O.K. by me...as I have paid a hell of a lot into the system (maxed out these past ten years). Still the intent does not seem to be there to really be security for the poor.

But, back when the left wing passed these programs and passed cost down the road.....they knew this day would come. And they thought it would take care of itself.

Look at Medicare. Only 25% of costs paid by beneficiaries.

That is left wing math for you.

Fuck over our kids so we can be popular and make the elderly a dependent class.

Great job.

We need to cut all baby boomers off medicare and social security as they are taking more than they put in and have racked up a huge national debt, they need to learn to pay their own way.