Legal Commentary

Social Security and Medicare Report

By Jeralyn

A new report on Social Security and Medicare says they will begin paying out more than they take in in taxes sooner than expected. Social Security could be depleted by 2037.

2037 is ages from now. I think we should leave social security alone. I certainly don't want to pay more in social security taxes for reduced benefits, which is one suggestion made by the report:

Social Security could be brought into actuarial balance over the next 75 years with changes equivalent to an immediate 1.6 percent increase in the payroll tax (from a rate of 12.4 percent to 14.4 percent) or an immediate reduction in benefits of 13 percent or some combination of the two. Ensuring that the system remains solvent on a sustainable basis beyond the next 75 years would require larger changes because increasing longevity will result in people receiving benefits for ever longer periods of retirement.

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The social security problem is being caused by the recession, not benefits being paid out. So maybe that will turn around.

Here's what Ezra has to say. By the way, today is Ezra's last day at American Prospect, bookmark his new home at the Washington Post where he'll start blogging Monday.

If you have any thoughts on medicare and social security, here's a place to discuss them. I have no idea about the economics. I only know I've paid in for 40 years and I want my money out when the time comes, and not at a cut rate.

As for the Senators who are proposing "sin taxes" on sugary colas to pay for health care, they need to get their heads out of the sand. All that will do, like increased cigarette taxes, is further tax the poor who can least afford it while not reducing consumption.

Full post as published by TalkLeft on May 12, 2009 (boomark / email).