HI Trust Fund
Posted 10-30-2012 at 09:36 PM by Mircea
This is almost as good as shopping at IGA.
I got my guitar out and played Redemption Song so I'm all better now.
Under the High-Cost Assumptions, the fail date is 2nd/3rd Quarter 2018 and 3rd/4th Quarter under your average GDP growth rate of 2.89%.
Taxes collected stand at $172 Billion including October's estimate and that gives you 2 months to find $35 Billion somewhere in order to hit the Intermediate cost assumptions. That isn't going to happen. A recession would put the fail date closer to 2016...just 4 years from now.
What happens when the HI (Medicare) Trust Fund fails? Services/benefits will be cut, unless the government intends to cover the losses out of the General Fund, which would bloat the budget deficit increasing the National Debt.
The Medicare Trustees have been begging for either spending cuts -- now at 17% -- or a tax increase -- now at 3.12% (1.56% for employer and 1.56% for employee). That would be a 7.5% increase over the current 1.45%.
The economic impact would be non-existent. It's just 0.11% and that works out to $1.10 for every $1,000 earned. Literally pocket-change.
I got my guitar out and played Redemption Song so I'm all better now.
Under the High-Cost Assumptions, the fail date is 2nd/3rd Quarter 2018 and 3rd/4th Quarter under your average GDP growth rate of 2.89%.
Taxes collected stand at $172 Billion including October's estimate and that gives you 2 months to find $35 Billion somewhere in order to hit the Intermediate cost assumptions. That isn't going to happen. A recession would put the fail date closer to 2016...just 4 years from now.
What happens when the HI (Medicare) Trust Fund fails? Services/benefits will be cut, unless the government intends to cover the losses out of the General Fund, which would bloat the budget deficit increasing the National Debt.
The Medicare Trustees have been begging for either spending cuts -- now at 17% -- or a tax increase -- now at 3.12% (1.56% for employer and 1.56% for employee). That would be a 7.5% increase over the current 1.45%.
The economic impact would be non-existent. It's just 0.11% and that works out to $1.10 for every $1,000 earned. Literally pocket-change.
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