According to the latest trustee report, Social Security will not be able to pay full benefits a year earlier than previously expected, and the bankruptcy date of medical insurance will only be five years later.
But no one in the capital has proposed a solution to the two largest federal welfare programs.
Between them, Social Security and Medicare consume nearly $2 trillion a year to pay for retirement and hospitalization benefits that millions of Americans depend on. According to statistics, these benefits consume 29% of all federal expenditures. USASpending.gov.
The cost of benefits is rising faster than the funds available to pay for these benefits—taxes, personal insurance premiums, and trust funds—as a result, without any reforms, medical insurance is expected to go bankrupt in 2026 and Social Security bankrupt in 2033. report It will be released on August 31.
Senate Finance Committee Chairman Ron Wyden (D-Ore.) issued a statement On Wednesday the dire financial situation of these two plans.
“According to the report released today, the Social Security Trust Fund will be depleted a year earlier than the last forecast. This means that future workers will receive a 25% reduction in benefits, even if they will still use every salary to contribute to social security. “Wyden said.
“Although the estimated consumption of the Medicare Trust Fund remains the same as last year’s report, it provides cold comfort to the millions of Americans who rely on Medicare for healthcare. Congress must work hand-in-hand with President Biden to ensure Medical insurance and social security will keep their promises to workers, the elderly and the disabled to ensure dignified retirement and high-quality health benefits,” said the Oregon Democrat.
The chairman of the House Ways and Means Committee Stephen Neal (D-Mass.) also took note of the trustee’s report, Say“In the turmoil of the past year and a half, the commitment and support of social security and medical insurance have remained consistent.
“In the deepest part of the COVID crisis, these earned benefits help families sustain their livelihoods and ensure access to health care. Democrats remain committed to maintaining and strengthening these important programs so that Americans never have to worry about losing the critical economic security they provide. “
Spokespersons for Wyden and Neal did not respond to the Epoch Times’ request for comment on how the two officials will resolve social security and medical insurance issues.
On the Republican side, a spokesperson for Representative Kevin Brady, Republican of Texas, was also unable to comment. He is a minority ranking member of Neal’s group.
The top Republican member of the Wyden Committee, Idaho Senator Mike Clapper did not provide a statement specifically in response to these reports, but he issued a statement. letter A few days ago, they submitted information to the Government Accounting Office (GAO) about their long-term delayed release in recent years. Federal law requires the annual report to be submitted to Congress in April.
“I urge GAO to continue to monitor the process of making the trustee’s report, and lack sufficient notification to Congress, especially to determine when the trustee’s report is expected to be submitted to Congress by the management trustee.
“So far, the notification procedure is inadequate at best, and at worst it is almost indifferent to the important information contained in the trustee’s report on the financial status of the fund, which is currently facing its ultimate exhaustion.”
Outside of Congress, think tank experts and other reform advocates emphasized that the window of opportunity to solve long-standing problems in Social Security and Medicare is shrinking.
“It makes no sense for us to allow important projects like Social Security and Medicare to remain on such an unstable and uncertain financial basis,” said Michael Peterson, the agency’s chief executive officer. Peter G. Peterson Foundation, Its focus is on federal financial reform.
“There are many well-known solutions available, and our legislators have complete control over putting these plans on a more sustainable path. Failure to do so is neither responsible nor fair to the millions of Americans who depend on them. Especially those who want to rely on these projects in the future,” Peterson said.
Maya MacGuineas, the responsible chairman of the Federal Budget Committee, tip The basic dilemma faced by policymakers, and pointed out that “acting today, we can solve the social security problem by increasing taxes by 27% or reducing benefits by 21%. If we wait until 2034, these adjustments will have to be expanded by four points. One or so. And there is almost no opportunity to gradually change or issue due warnings to workers.”
with Chris EdwardsThe Director of Tax Policy Research at the Cato Institute told The Epoch Times, “The upcoming bankruptcy date of Social Security and Medicare should prompt Congress to cut fast-growing benefits, but I worry that politicians may issue even more bond debt. Fill the growing gap. If debt triggers an economic crisis and recession, the future losers will be young Americans with rising tax burdens and the overall economy.”
This News Originally From – The Epoch Times