The Concord Center, as always a shining light of common sense on budgetary issues, highlights a Urban Institute study that sheds light on why Social Security and Medicare are leading us into Bankruptcy in a recent post.
Medicare payroll taxes, which only go towards Medicare Part A (hospital insurance), combined with premiums (which are set at levels to pay for about 25 percent of Medicare Part B costs), only cover 51 to 58 percent of total Medicare expenditures over time.
This is basic mathematics. We’re not paying enough in, and spending too much. Its childish to think we can go without either drastically cutting, drastically raising taxes, or a mixture of the two. Since neither of the first two are at all politically possible, the real question is how much taxes need to be raised, and where we can trim. No longer can we just accept that we’re going to just borrow the difference between what we want and what we’re willing to pay in taxes.
Really an interesting post. That snippet above is just one nugget out of several… check it out.