JUST THE FACTS

Medicare:

The costs of Medicare doubled every four years between 1966 and 1980.[31] According to the 2004 “Green Book” of the House Ways and Means Committee, Medicare expenditures from the American government were $256.8 billion in fiscal year 2002. Beneficiary premiums are highly subsidized, and net outlays for the program, accounting for the premiums paid by subscribers, were $230.9 billion.

Medicare spending is growing steadily in both absolute terms and as a percentage of the federal budget. Total Medicare spending reached $440 billion for fiscal year 2007, or 16% of all federal spending. The only larger categories of federal spending are Social Security and defense. Given the current pattern of spending growth, maintaining Medicare’s financing over the long-term may well require significant changes.[32]

According to the 2008 report by the board of trustees for Medicare and Social Security, Medicare will spend more than it brings in from taxes this year (2008). The Medicare hospital insurance trust fund will become insolvent by 2019.

From Wikipedia – http://en.wikipedia.org/wiki/Medicare_(United_States)#Costs_and_funding_challenges

Interesting – doubled every 4 years?  By the way – the defense is the ONLY duty that the FEDERAL government has any right Constitutionally (between Medicare, Soc Sec and defense) to spend money on. And now that it is mentioned:

Social Security:

In 1950, there were 16 workers paying taxes into the system for every retiree who was taking benefits out of it. Today, there are a little more than three. By the time the baby boomers retire, there will be just two workers who will have to pay all the taxes to support every one retiree.

Fewer workers for more retirees mean each worker bears an increasing financial burden to pay the benefits that Social Security has promised. The original Social Security tax was just 2 percent on the first $3,000 that a worker earned, a maximum tax of $60 per year. By 1960, payroll taxes had risen to 6 percent. Today’s workers pay a payroll tax of 12.4 percent.

It is going to get much worse. In order to continuing funding retiree benefits, the payroll tax will have to be raised to more than 18 percent. That’s nearly a 50 percent increase.

Let’s look at that financial burden another way. The Social Security payroll tax is already 12.4 percent of wages, or one eighth of a worker’s total annual wages. It is the biggest tax the average household must pay. Roughly 80 percent of American families pay more in Social Security taxes than they do in federal income taxes.

Despite that already huge tax burden, the payroll tax will have to be increased by nearly half in order to continue paying Social Security benefits. That’s a terrible burden to impose on our children and grandchildren.

Thanks to Mr. Tanner at the Cato Institute for this article:
http://www.socialsecurity.org/pubs/articles/tanner-050114.html

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