![]() Do Entitlements Require Political Action Entitlement is a poor word as all but the wealthy have invested substantial income in SS and Medicare. |
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Social Security Basics | ||||
Summary | Definition |
Who Benefits from Most to Least |
Problems |
Concerns |
Medicare |
Subsidized healthcare for the elderly |
All benefit are the same,
high income earners pay most |
Required additional
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Longer life, especially for poor people who now also have subsidized health care, will increases cost. Free cases poorer health. Solutions, later eligibility, less coverage, higher deductibles currently not acceptable to electorate. |
Social Security |
Retirement income, partial at 62, full at 67 and max at 70, |
Low income earners receive
a higher investment return, some receive death and spousal benefits |
Deficit concerns until baby boomers die, retirement age raised or young people vote.SS Benefits are 100% Secure, but their real value depends on economic success.. | Solution just time or later retirement but politicians will not act until forced by electorate Increased negative cash flow should add political pressure. |
Tax Expenditures | Legal deductions and exemptions from income decrease tax collections | Employee sponsored health insurance,401K, long-term capital imputed rental income, mortgage interest, earned income tax credits, deferred income from controlled foreign corporations Table 2 |
Tax payers don't
appreciate
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Solution of decreasing them by a third is unacceptable to electorate though this would have increase tax collections $400 billion in 2015 when the deficit was $439 billion. |
Personal Advancement Career Options Personal Finance Healthy Lifestyles See 2024 Election Information 6/29/24 |
Bankruptcy Very, Very Unlikely
Introduction.
As a result of changes to Social Security enacted in 1983,
Note: If SS Fund were to go bankrupt, 2) Payroll Taxes Stable for Many Years |
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See Taxing the Rich We Have Three Choices |
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3. We Have the Funds |
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Social insurance taxes -SS + Medicare = deep doo-doo
Making Employer Portion of Payroll Taxes |
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Editor's Notes: 1) The Greenspan
Commission took two years to come up with a tax law
2)
Many retirees with dependents have low income.
return
to index
But, life expectancy data indicates average low income recipients
will die much earlier 3) We need to
eliminate extreme end of life benefits for Medicare and Medicaid. 4) An increase in the qualification ages from 52 and 65+ is not a decrease in benefits because people live longer. |
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