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Government benefit programs in trouble (Social security & Medicare)
Yahoo News ^ | March 25, 2008 | MARTIN CRUTSINGER

Posted on 03/25/2008 12:30:05 PM PDT by NRG1973

Trustees for the government's two biggest benefit programs warned Tuesday that Social Security and Medicare are facing "enormous challenges" with the threat to Medicare's solvency far more severe.

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The trustees, issuing a once-a-year analysis of the government's two biggest benefit programs, said the resources in the Social Security trust fund will be depleted by 2041. The reserves in the Medicare trust fund that pays hospital benefits were projected to be wiped out by 2019.

Both those dates were the same as in last year's report. But the trustees warned that financial pressures will begin much sooner when the programs begin paying out more in benefits each year than they collect in payroll taxes. For Medicare, that threshhold is projected to be reached this year and for Social Security it is projected to occur in 2017.

The first year that payments will exceed income for Social Security will occur in 2017, just nine years from now, reflecting growing demands from the retirement of 78 million baby boomers. Medicare is projected to pay out more than it receives in income starting this year.

"The financial difficulties facing Social Security and Medicare pose enormous challenges," the trustees said in their report. "The sooner these challenges are addressed, the more varied and less disruptive their solutions can be."

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: previouslyposted; searchisyourfriend
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To: NRG1973

“The financial difficulties facing Social Security and Medicare pose enormous challenges,” the trustees said in their report. “The sooner these challenges are addressed, the more varied and less disruptive their solutions can be.”

Except that when solutions were proposed by President Bush, the media put a quick stop to any potential change to these welfare systems. Now, it is an issue to be addressed. Hmm, just in time for an election.....


21 posted on 03/26/2008 6:26:50 AM PDT by CSM (Kakistocracy: Government by the least qualified or most unprincipled citizens.)
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To: BenLurkin

“They could cash me out today — just refund all that was paid into my account (the full 13% each paycheck) plus 10%interest compounded annually since 1973.”

I would let them keep my past contributions if they would let me opt out of future contributions.


22 posted on 03/26/2008 6:27:50 AM PDT by CSM (Kakistocracy: Government by the least qualified or most unprincipled citizens.)
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To: NRG1973

Someone took the money out of the lockbox and left IOUs?


23 posted on 03/26/2008 6:30:12 AM PDT by ninonitti
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To: misterrob

Succinct analysis. ;-)


24 posted on 03/26/2008 6:35:14 AM PDT by verity ("Lord, what fools these mortals be!")
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To: BenLurkin

I will let the government keep all of the money that my employer and I have payed in over the last twenty years. All I want is out. Let me take mine and my employers contributions and invest them in my own personal accounts. That’s all I ask.


25 posted on 03/26/2008 4:23:35 PM PDT by Bluestateredman (Self-sufficiency is the American Way)
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