It’s no secret that the long-cherished seniors’ programs Social Security and Medicare are on the ropes. It has been forecast for decades that these entitlements would hit the wall, as benefits were enhanced, people lived longer, and the huge baby boom generation gave birth to fewer children to take up the burden of the FICA taxes that fuel the system. Since the money that retirees paid into the plans was spent long ago, it’s only current taxes that keep the checks will not be enough in just a few years. With seniors plans (plus Medicaid) taking over half of Federal spending and increasing red ink in Washington’s budget, it’s no surprise that push is coming to shove. While this slow-motion wrestling has been going on for years, the clock is ticking and something must soon be done.
While the President apparently views these programs as untouchable, and Democrats seem unwilling to address them at this time without considering other issues, the House GOP has recently made a stab at getting them under control. An initiative called “ A Brighter American Future” is looking to take some 537 billion dollars out of Medicare over the next ten years, and another 4 billion from Social Security. While this proposal faces almost certain doom, something eventually must change, and retirees should stay on their toes.
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