Posted on 07/23/2004 2:33:35 PM PDT by mft112345
A 72-trillion-pound elephant is in the room and we have a patriotic duty to acknowledge him before he devours our economy, crushes the quality of our health care and destroys our retirement security.
According to the 2004 Social Security Trustees report the unfunded long-term obligations of Social Security and Medicare amount to $72 trillion. The total bill for current and future taxpayers breaks down as follows: $21.8 trillion from Medicare Part A; 23.2 trillion from Medicare Part B; $16.6 trillion from the new Medicare prescription drug benefit; and $10.4 trillion from Social Security.
It's highly unlikely that either party will mention the $72 trillion figure in any of their 30-second-sound bytes, because there is no immediate political gain in raising the issue.
To put $72 trillion into perspective: On July 15, at a luncheon event in the Rayburn House Office Building of the U.S. Capitol, Social Security Trustee Thomas R. Saving told an audience that Congress would have to devote "73 percent of all income taxes from now until eternity" in order to pay for the two entitlement programs.
Repeating a warning from the 2004 Social Security Trustees report, Saving said these two programs are expected to consume 1/4 of all federal income taxes by 2019, and added that he doesn't expect Congress or the American people to allow this to happen. When I questioned him after his talk, he told me that he believes tax increases are inevitable if America decides to pay for these entitlements as they exist now.
Referencing the former Soviet Union, he questioned whether Americans would still be willing to work under the future tax burden. Jokingly, I asked him whether it was time to move to a different country, and he said every country is facing similar demographic problems.
America's patients, retirees and taxpayers can't afford to wait 15 years before politicians are brave and honest enough to confront this crisis. Voters ought to ask politicians to propose fair, reasonable and specific solutions to this $72 trillion dilemma.
Social Security private accounts are a necessary -- but small -- step towards fixing this problem. These individual accounts would not address the debt from the retirees who are in the system now or the 70 million baby boomers who might retire before Congress agrees to allow these accounts. As mentioned earlier, projected Social Security spending only accounts for $10.4 trillion, with more than $60 trillion coming from projected Medicare spending.
We should use any and every opportunity to ask candidates and office holders to discuss the $72 trillion figure mentioned in the Trustee's report. Political candidates should not be allowed to gloss over this issue, simply because it's a sensitive subject in an election year. America's taxpayers, patients and retirees can't afford to give them this luxury.
If we want to prevent SS from going under, I propose that members of congress pay into SS just like everyone else, and discontinue the golden parachutes they have instituted for themselves.
Didn't I hear that they are now going to cever obesity?
Look for a lot of fat folks joining health clubs on our taxes.
Why? Just raise it by 5 years right now and phase out Social Security altogether.
It's not about demographic problems --- the whole problem is that it's a Socialist program and Socialism just doesn't work for very long. Mexico has about the highest birth rate in the world and it's government retirement plan is going broke before ours which is why they're demanding to be included in ours.
They have - since 1984
Think things will be better by 2050?
What makes you think so? Don't you know that Social Security benefits have been increased every election cycle since 1937?
Congressional pensions are another story - they do, however, pay Social Security tax.
Why don't you post your own thoughts over on the blogs...you set this up to look like it is someone important or something that is something more than just another opinion...We all got opinions but we aren't so desperate as to post our own ramblings as if it were NEWS
Statement B: Repeating a warning from the 2004 Social Security Trustees report, Saving said these two programs are expected to consume 1/4 of all federal income taxes by 2019, and added that he doesn't expect Congress or the American people to allow this to happen
So....is it 73% or is it 1/4th?
Can someone explain this to me? It seems to be a mistake....can't be both ways.
No, I just hope we can turn the tide. For all of our sakes.
No problem! The real threat arrives in 2027. Nothing else will matter then.
"with some 40 percent of the nation's population already having reached the "governmental
dependency" phase."
Now that is pathetic.
Well we should start phasing out Social Security for anybody not in the work force right now. Good thing I am going to be a minister so I can opt out of that garbage
"If we want to prevent SS from going under, I propose that members of congress pay into SS just like everyone else, and discontinue the golden parachutes they have instituted for themselves."
Here, here! Then throw in all those public employees, many work for Social Security, who will never have to worry about SS benefits or medicare.
Income taxes account for only 25-30% of fed taxes? Are they counting the FICA as an income tax?
Where does the remainder come from?
"statement A: Congress would have to devote "73 percent of all income taxes from now until eternity" in order to pay for the two entitlement programs.
Statement B: Repeating a warning from the 2004 Social Security Trustees report, Saving said these two programs are expected to consume 1/4 of all federal income taxes by 2019, and added that he doesn't expect Congress or the American people to allow this to happen
So....is it 73% or is it 1/4th?
Can someone explain this to me? It seems to be a mistake....can't be both ways."
Apologies. To clarify: He said, assuming federal income taxes follow the same trend as they have over the last 50 years, Congress would have to apply 73 percent of income taxes from now until eternity to pay for the two programs.
""If we want to prevent SS from going under, I propose that members of congress pay into SS just like everyone else, and discontinue the golden parachutes they have instituted for themselves."
Here, here! Then throw in all those public employees, many work for Social Security, who will never have to worry about SS benefits or medicare."
Most members of Congress elected after a certain year in the 1980s do pay into social security. Call your congressman and ask for a report on this subject from the library of congress.
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