If the SS fund will exhaust by 2042

[soccerballtux]

So I was just re-thinking through everything that's going to be happening in the next 10 years, namely the increase in SS and Medicare taxes to pay for all the retiring baby boomers, but then I remembered everyone was saying it won't go bankrupt until 2040-42.

So what does that mean for SS taxes? Will the rate go up?
How does Medicare get paid for, is it on a per year basis? IE nobody paid into the system like with SS?

 

[XZeroII]

You are confused, like most. SS won't go bankrupt, it will just start costing more money than the programs are bringing in. Last time I checked, SS was bringing in about $250 billion in revenue for the government. This is just going into the general tax collections fund. So right now these programs are just another tax on you and I. When people talk about the program going bankrupt, they mean that it will no longer be a source of revenue.

 

[BigJelly]

Originally posted by: soccerballtux
So I was just re-thinking through everything that's going to be happening in the next 10 years, namely the increase in SS and Medicare taxes to pay for all the retiring baby boomers, but then I remembered everyone was saying it won't go bankrupt until 2040-42.

So what does that mean for SS taxes? Will the rate go up?
How does Medicare get paid for, is it on a per year basis? IE nobody paid into the system like with SS?

SS: It means taxes are going up, people that don't pay SS taxes or get SS payments (the "rich") will pay SS taxes and still get nothing, benefits will be reduced (less SS money), and or higher retirement ages (with the goal of having you die before you can collect the money YOU put in).

Medicare: Just the same as SS. Higher FICA taxes, less benefits, and obama/pelosi/reid even worked into the "stimulus" a healthcare "plan" to look into medicial costs and how to reduce them--MOST LIKELY BY REDUCING CARE.

Basically, your typical government run organization: costs more, gives less, and will fail.

 

[Craig234]

Originally posted by: soccerballtux
So I was just re-thinking through everything that's going to be happening in the next 10 years, namely the increase in SS and Medicare taxes to pay for all the retiring baby boomers, but then I remembered everyone was saying it won't go bankrupt until 2040-42.

So what does that mean for SS taxes? Will the rate go up?
How does Medicare get paid for, is it on a per year basis? IE nobody paid into the system like with SS?

SS: the basic question is, will Democrat who support SS set the policy, and make the tough choices to deal with the massive needs and debt?

Or will Republicans who want to get rid of SS for reasons including a desire to get their (donors') hands on the money, to resenting it as a program that helps Democrats politically, to simple ideology against it, set the policy, looking for ways to gut it if not to 'privatize it', i.e., help out Wall Street with a massive influx of cash useful both for propping up company stocks and for extracting massive fees?

Medicare: Huge financial issues; they may drive the 'Universal Healthcare' direction where costs can be cut over the current very inefficient for-profit industry.

A challenge there will be maintaining quality and service levels as costs are cut, the same issue faced by our fellow advanced western nations.

One look at a comparison does show that whatever the benefits, our medical costs are far more expensive than other nations.

 

[heyheybooboo]

SS is currently running a surplus - somewhere around $300 billion this budget year and $1.7 trillion surplus over the next 5 years.

By the end of the next decade annual revenues in SS will no longer exceed annual expenditures and the Fed will have to start paying off all the IOUs to the 'trust fund'. As you kinda noted, it is projected that all the IOUs will be 'repaid' sometime around 2042.

SS will not actually be 'bankrupt'. If no changes are made by the mid-2040s the fund will only be able to pay 70-75% of benefits based upon today's levels.

Originally posted by: BigJelly

SS: It means taxes are going up, people that don't pay SS taxes or get SS payments (the "rich") will pay SS taxes and still get nothing, benefits will be reduced (less SS money), and or higher retirement ages (with the goal of having you die before you can collect the money YOU put in).

Medicare: Just the same as SS. Higher FICA taxes, less benefits, and obama/pelosi/reid even worked into the "stimulus" a healthcare "plan" to look into medicial costs and how to reduce them--MOST LIKELY BY REDUCING CARE.

Basically, your typical government run organization: costs more, gives less, and will fail.

Big Jelly is a Big Troll ..... :shocked:

 

[miketheidiot]

Originally posted by: heyheybooboo

Originally posted by: BigJelly

SS: It means taxes are going up, people that don't pay SS taxes or get SS payments (the "rich") will pay SS taxes and still get nothing, benefits will be reduced (less SS money), and or higher retirement ages (with the goal of having you die before you can collect the money YOU put in).

Medicare: Just the same as SS. Higher FICA taxes, less benefits, and obama/pelosi/reid even worked into the "stimulus" a healthcare "plan" to look into medicial costs and how to reduce them--MOST LIKELY BY REDUCING CARE.

Basically, your typical government run organization: costs more, gives less, and will fail.

Big Jelly is a Big Troll ..... :shocked:

he is also pretty ignorant.

 

[BigJelly]

Originally posted by: heyheybooboo
SS is currently running a surplus - somewhere around $300 billion this budget year and $1.7 trillion surplus over the next 5 years.

By the end of the next decade annual revenues in SS will no longer exceed annual expenditures and the Fed will have to start paying off all the IOUs to the 'trust fund'. As you kinda noted, it is projected that all the IOUs will be 'repaid' sometime around 2042.

SS will not actually be 'bankrupt'. If no changes are made by the mid-2040s the fund will only be able to pay 70-75% of benefits based upon today's levels.

Originally posted by: BigJelly

SS: It means taxes are going up, people that don't pay SS taxes or get SS payments (the "rich") will pay SS taxes and still get nothing, benefits will be reduced (less SS money), and or higher retirement ages (with the goal of having you die before you can collect the money YOU put in).

Medicare: Just the same as SS. Higher FICA taxes, less benefits, and obama/pelosi/reid even worked into the "stimulus" a healthcare "plan" to look into medicial costs and how to reduce them--MOST LIKELY BY REDUCING CARE.

Basically, your typical government run organization: costs more, gives less, and will fail.

Big Jelly is a Big Troll ..... :shocked:

yet your own post confirms my post

By the end of the next decade annual revenues in SS will no longer exceed annual expenditures and the Fed will have to start paying off all the IOUs to the 'trust fund'

how do you think they will pay off the IOUs? look up in my post: It means taxes are going up, people that don't pay SS taxes or get SS payments (the "rich") will pay SS taxes and still get nothing

The sad truth is that I'm right, I hope I'm not since I'M PAYING FOR SOCIAL SECURITY. So I'd like to see MY money later on.

If being a troll is someone that realizes that the government pissed away our SS money and not being a troll means you ignore reality that the SS "trust" fund is just IOUs and in 2016 we will need to dip into the "trust" fund to pay out SS benefits, then I'll gladly be the troll.

NOTE: trust above is in quotes because we trusted government with our money and they replaced it with IOUs--not trust by anyones standards except for governments.

 

[heyheybooboo]

Somebody needs his binkee and a nap.

Please take your Twenty Percenter Tripe, faux outrage and condescension elsewhere.

You are part of the problem.

 

[Craig234]

Originally posted by: heyheybooboo
Somebody needs his binkee and a nap.

Please take your Twenty Percenter Tripe, faux outrage and condescension elsewhere.

You are part of the problem.

I don't see where his most recent post deserved that dismissive response. His main points are valid about the trust fund being pissed away being a problem.

 

[BrownTown]

We need to get rid of social security NOW while we still can is what it means to me.

 

[senseamp]

Just means the govt will have to pay back the IOUs that it put into SS. This is nothing new.

 

[Jaskalas]

Originally posted by: heyheybooboo
Somebody needs his binkee and a nap.

Please take your Twenty Percenter Tripe, faux outrage and condescension elsewhere.

You are part of the problem.

Such a post displays the attitude of those who take our money away from us.

 

[soccerballtux]

Originally posted by: senseamp
Just means the govt will have to pay back the IOUs that it put into SS. This is nothing new.

Yes and my concern is that's going to require more taxes.

 

[ProfJohn]

Originally posted by: Craig234
Or will Republicans who want to get rid of SS for reasons including a desire to get their (donors') hands on the money,

As opposed to the Democrats whose hands are on the money already right??

 

[Craig234]

Originally posted by: ProfJohn

Originally posted by: Craig234
Or will Republicans who want to get rid of SS for reasons including a desire to get their (donors') hands on the money,

As opposed to the Democrats whose hands are on the money already right??

Let's count the falsehoods you fit into that sentence:

1. Dems are not 'getting their hands on the money regarding the main system apart from the surtax'. SS is operating efficiently, paying people, only 3% overhead.

2. Republicans scheme to let Wall Street run SS would triple the administrative costs.

3. Regaridng the surtax, both parties have borrowed and spend it. That's 20 years for Republicans (Reagan, Bush 41 and 43) and only 8 for dems (Clinton, who oh by the way balanced the budget and was in a position to stop borrowing it). The major party who campaigned on a platform to stop borrowing and spending it is the Democrats (Gore). And oh ya, the Republicans created the scheme.

4. As for who wants to protect SS and who wants to get their hands on the money, Dems are the party who created SS and have protected it from Republican assault ever since.

Dems want SS to continue, putting money in the hands of the elderly. Republicans are the party who would find 'better use' for that money than having an SS program.

So yes, my statement stands well.

 

[Hacp]

Originally posted by: soccerballtux
So I was just re-thinking through everything that's going to be happening in the next 10 years, namely the increase in SS and Medicare taxes to pay for all the retiring baby boomers, but then I remembered everyone was saying it won't go bankrupt until 2040-42.

So what does that mean for SS taxes? Will the rate go up?
How does Medicare get paid for, is it on a per year basis? IE nobody paid into the system like with SS?

Its actually going to be much sooner. By 2017, we'll be under the water.

Medicare is another matter we need to take care of, one that is arguably more urgent. That program needs to be scrapped now. It is costing us way more then social security to maintain. If the government gets out of Health Care. prices will drop and there will be more health care for everyone. Otherwise, there will be too few health care professionals and too many sick patients waiting in the lobby.

As we all know from econ class, if the supply curve is steady, but the demand suddenly becomes very steep and inelastic, prices will shoot up.

 

[Craig234]

Originally posted by: soccerballtux

Originally posted by: senseamp
Just means the govt will have to pay back the IOUs that it put into SS. This is nothing new.

Yes and my concern is that's going to require more taxes.

Sadly, it probably will. Both sides can agree to criticize the misuse of the trust fund.

 

[Eeezee]

But does anyone actually have a solution? As evidenced by the recent economic crash, privatization is probably not the answer

 

[senseamp]

Originally posted by: soccerballtux

Originally posted by: senseamp
Just means the govt will have to pay back the IOUs that it put into SS. This is nothing new.

Yes and my concern is that's going to require more taxes.

Not really a concern. I think it has been fairly obvious that repaying the IOUs would require that money to come from taxes.

 

[soccerballtux]

Originally posted by: senseamp

Originally posted by: soccerballtux

Originally posted by: senseamp
Just means the govt will have to pay back the IOUs that it put into SS. This is nothing new.

Yes and my concern is that's going to require more taxes.

Not really a concern. I think it has been fairly obvious that repaying the IOUs would require that money to come from taxes.

Not if the Fed monetizes government debt.

 

[Zebo]

It will run out this year or next. Projections were done with a positive vector not anticipating great depression 2.0 and jobless rates to come.

 

[spidey07]

SS tax IS raised every year by raising the exemption and HCE limit.