grandma zaza
New member
...how it will affect them? The 2009 Social Security and Medicare Trustees Reports show the combined unfunded liability of these two programs has reached nearly $107 trillion in today's dollars! That is about seven times the size of the U.S. economy and 10 times the size of the outstanding national debt.
The unfunded liability is the difference between the benefits that have been promised to current and future retirees and what will be collected in dedicated taxes and Medicare premiums. Last year alone, this debt rose by $5 trillion. If no other reform is enacted, this funding gap can only be closed in future years by substantial tax increases, large benefit cuts or both.
Future Payroll Tax Burdens. Currently, a 12.4 percent payroll tax on wages funds Social Se*curity and a 2.9 percent payroll tax funds Medicare Part A (Hospital Insurance). But if payroll tax rates rise to meet unfunded obligations:
When today's college students reach retirement (about 2054), Social Security alone will require a 16.6 percent payroll tax, one-third greater than today's rate.
When Medicare Part A is included, the payroll tax burden will rise to 25.7 percent - more than one of every four dollars workers will earn that year.
If Medicare Part B (physician services) and Part D are included, the total Social Security/Medicare burden will climb to 37 percent of payroll by 2054 - one in three dollars of taxable payroll, and twice the size of today's payroll tax burden!
****Can Higher Taxes Solve the Prob*lem? The CBO also found that if federal income tax rates are adjusted to allow the government to continue its current level of activity and balance its budget:
The lowest marginal income tax rate of 10 percent would have to rise to 26 percent.
The 25 percent marginal tax rate would increase to 66 percent.
The current highest marginal tax rate (35 percent) would rise to 92 percent!
Is this what you want for yourself and for your children/grandchildren?
http://www.ncpa.org/pub/ba662
The unfunded liability is the difference between the benefits that have been promised to current and future retirees and what will be collected in dedicated taxes and Medicare premiums. Last year alone, this debt rose by $5 trillion. If no other reform is enacted, this funding gap can only be closed in future years by substantial tax increases, large benefit cuts or both.
Future Payroll Tax Burdens. Currently, a 12.4 percent payroll tax on wages funds Social Se*curity and a 2.9 percent payroll tax funds Medicare Part A (Hospital Insurance). But if payroll tax rates rise to meet unfunded obligations:
When today's college students reach retirement (about 2054), Social Security alone will require a 16.6 percent payroll tax, one-third greater than today's rate.
When Medicare Part A is included, the payroll tax burden will rise to 25.7 percent - more than one of every four dollars workers will earn that year.
If Medicare Part B (physician services) and Part D are included, the total Social Security/Medicare burden will climb to 37 percent of payroll by 2054 - one in three dollars of taxable payroll, and twice the size of today's payroll tax burden!
****Can Higher Taxes Solve the Prob*lem? The CBO also found that if federal income tax rates are adjusted to allow the government to continue its current level of activity and balance its budget:
The lowest marginal income tax rate of 10 percent would have to rise to 26 percent.
The 25 percent marginal tax rate would increase to 66 percent.
The current highest marginal tax rate (35 percent) would rise to 92 percent!
Is this what you want for yourself and for your children/grandchildren?
http://www.ncpa.org/pub/ba662