I have done entire posts here explaining exactly that.
And Medicare is even in worse shape than FICA, running deficits since GWB,
But the GOPs voting most loyal base are those on medicare and SS so they (GOP) will never admit that there is a problem right now. They always propose cutting those +10 years away.
You miss my point on FIAC/SS.
My point was that this GOP house tried to say FICA tax cuts must be ‘paid for’, but upper income ones do not.
This worked out so badly for them that they eventually begged Bohner to let them extend the FICA tax cuts just as O demanded.
Nothing positive is gained with these sort of disasters, and I think this is headed that way.
It was the 2010 lame duck GOP minority in the Senate that allowed these FICA cuts exactly two years ago, to get the 2 year extension on Bush tax cuts to get us through Os reelection. Now we are screwed.
Medicare Part A (HI Trust Fund) has been running a deficit since 2008, but it is much worse than that. SMI (Medicare Parts B and D) are consuming an increasingly bigger share of the the General Fund. Why? Because by law the premiums collected for those programs cover only 25% of the costs. The remaining 75% must come from the General Fund. According to the Trustees Report, in FY2011, this amounted to $222 billion. These numbers will continue to increase as our population over 65 doubles in the next 20 years and actual healthcare costs increase.
But the GOPs voting most loyal base are those on medicare and SS so they (GOP) will never admit that there is a problem right now. They always propose cutting those +10 years away.
Medicare will have to be addressed way before that. Even though Obamacare extends the solvency of the HI trust fund by 8 years to 2024, something will have to be done or Medicare Part A will go bankrupt and be only able to pay reduced benefits. We are cashing in the IOUs from the HI Trust Fund to make up the difference, which means more money from the GF and more debt and deficit. And if the truth be known, I doubt that the $716 billion will ever be taken from Medicare due to political pressure. Under Obamacare, starting next year, payments to doctors and hospitals must be reduced by 31%. Not going to happen thus driving up the costs of the program and greater taxpayer subsidies. We are also told that extending unemployment benefits helps the economy.
My point was that this GOP house tried to say FICA tax cuts must be ‘paid for’, but upper income ones do not. This worked out so badly for them that they eventually begged Bohner to let them extend the FICA tax cuts just as O demanded.
They are not tax cuts and the Reps were happy to continue them for another year. It is just another stimulus vehicle--no different from Obama's Porkulus bill. The political class believed that it offered the best way to get more money in more pockets of individual consumers since tax rebates only helped those paying income taxes. But they are borrowing the money to do so.
It was the 2010 lame duck GOP minority in the Senate that allowed these FICA cuts exactly two years ago, to get the 2 year extension on Bush tax cuts to get us through Os reelection. Now we are screwed.
Exactly. The GOP lame duck Congress gave up whatever leverage it had, including getting real spending cuts. There have been none as spending continues to increase. Boehner and his leadership team always finds ways to postpone the fight and cave so that we avoid confronting the basic fiscal issues. They continue to do so. I say go over the cliff, accept the political consequences and start the needed national dialogue. We stand and fight now while we still control the House. We are trying to save the country, not maintain the status quo, which will destroy this nation.