Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

So if Medicare (and social security) are going to run out of money why isn't

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Topic Forums » Health Donate to DU
 
YewNork Donating Member (449 posts) Send PM | Profile | Ignore Sun Aug-23-09 06:45 AM
Original message
So if Medicare (and social security) are going to run out of money why isn't
Edited on Sun Aug-23-09 06:46 AM by YewNork
the government raising the contribution rates of those taxes in order to sustain those programs?

In the mid 1990s, Canada realized that the Canada Pension Plan (their version of social security) would run out of funds within 20 years if they
didn't increase the contribution rate. So, over a period of seven years, the contribution rate for both employees and employers was increased
from 2.8% to 4.95%. This change has guaranteed that there will be sufficient funds to maintain the system.

Now, everyone's complaining that Medicare and Social Security are running out of funds, but the one thing that those same people won't do is
increase the contributions to whatever level is needed to maintain them. That's just burying their heads in the sand. Wake up people, the
problem is not going to go away and by ignoring it you're just making the ultimate outcome worse.

Printer Friendly | Permalink |  | Top
ejpoeta Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-23-09 07:31 AM
Response to Original message
1. because people want things without having to put into them.... they expect some magical
thing to keep it going forever.
Printer Friendly | Permalink |  | Top
 
rfranklin Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-23-09 07:57 AM
Response to Original message
2. I don't know about Medicare but SS was fully funded...
practicallly into perpetuity. Then Reagan and Bush I spent it as fast as they could leaving us with the IOUs that Bush II was mumbling about a few years back.

I remember my paycheck shrinking as Reagan raised the contributions and told us that this would fund SS virtually forever. It was just a way to fund government spending on useless weapons without taxing the wealthy.
Printer Friendly | Permalink |  | Top
 
katkat Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-23-09 08:38 AM
Response to Reply #2
4. SS should not be running out of money
In some other thread, I posted the number crunching I had done, based on supposed I had invested everything the gov had taxed from me for SS instead in a 5% passbook account with compound interest all those years. 5% is a conservative long term amount, by the way, n.b. the 1980s double digit returns on passbooks and CDs.

It would be enough to pay my SS benefits until a very old age and still leave the gov with a big pot of money left over.

Now, there were likely transient effects as SS started up, but they should be long gone from the system.

So, what has the gov done with the SS money...

Printer Friendly | Permalink |  | Top
 
Arkansas Granny Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-23-09 08:05 AM
Response to Original message
3. For some reason, many Americans view taxes as a penalty. I don't where they think
the money comes from to provide the services that everyone expects to have, but they sure don't want to have to contribute anything.
Printer Friendly | Permalink |  | Top
 
stray cat Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-23-09 09:13 AM
Response to Original message
5. because most of us in the lower and middle income ranges don't vote for people who raise our taxes
just like the upper incomes. DUers are in favor of raising taxes for SS and Medicare as long as it is on those in higher income brackets then themselves. I think support goes down when the sacrifices demanded touch us. We need leaders with courage to offend Americans and lose the next election.
Printer Friendly | Permalink |  | Top
 
OHdem10 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-23-09 10:11 AM
Response to Original message
6. Tell Congress to stop stealing from these programs everytime
they want to fund an earmark, fund a war, or give to a pet project.

If Congress did not use SS, especially for general funds and
leave IOUs the funds would be a lot better off.

Don"t you love it. Steal money from a fund then say Oh, Dear,
this fund is running out of money.
Printer Friendly | Permalink |  | Top
 
OllieLotte Donating Member (495 posts) Send PM | Profile | Ignore Mon Aug-24-09 12:20 PM
Response to Original message
7. Interesting. We are contributing over 7% in the US.
With the employer kicking in an additional 7%. That should be more than enough.
Printer Friendly | Permalink |  | Top
 
grasswire Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-24-09 12:32 PM
Response to Original message
8. because they want to drown it in the bathtub
They have wanted to kill government programs for decades now.

If they don't make it solvent, it will be dead. And they want it dead.

(And grandma too, apparently.)
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Thu Nov 27th 2014, 03:02 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Topic Forums » Health Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC