As I indicated, more than 70% of wage earners pay more in payroll taxes than income taxes. A different method of capturing revenue could lessen the burden on employers and employees. It could give people more net income and incentivize more business activity, here and competing abroad.
Medicare and SS are in the red, i.e., benefits exceed revenue. Shortfalls are made up by the trust funds. The Medicare trust fund (HI) will be exhausted in 2028 or earlier. SSTF in 2033. By law, benefits will be limited to the revenue received. Estimates are a 20% reduction.
Something needs to be done. The status quo is not an option. Trump is smart not to talk about entitlement reform now. He won’t repeat the Ryan mistake. Both parties must support reform jointly.
Would it? A sales tax and a VAT tax would have to at least make up for the revenue lost. Plus it is also just lumped into the general revenue fund and Social Security and Medicare just become another line item like the debt. So the new sources will have to at least match the revenue generated from the old sources, and do so without the employer matching, so it's likely that the average tax payer will pay more under the new taxes than the old.
Something needs to be done. The status quo is not an option.
No argument there.
Trump is smart not to talk about entitlement reform now.
He just did by promising if reelected he would work to repeal the FICA and Medicare taxes.
Both parties must support reform jointly.
This Congress? This President? Nobody is interested in working together on just about anything.
” ... Shortfalls are made up by the trust funds. The Medicare trust fund (HI) will be exhausted in 2028 or earlier. SSTF in 2033. ... “
Do you have a source for this? I need it to argue with some long term union Rats. They think Medicare & SS are somehow inexhaustible.