Where do the funds for medicare and social security come from? I’m under impression theyre 100% pay deducted?
I don’t gеt іt whу thеу саn modify programs lіkе social security аnd medicare whеn іt’s mу understanding thаt thе moneys аrе 100% frοm ουr taxes/payroll deductions. I’ve аlѕο heard thаt thе οnlу reason thеу′re іn trουblе іѕ bесаυѕе both parties borrow frοm thеm. Trυе?
Social security and Medicare are paid for from general taxation. All government expenditure come from our taxes. They can be changed just like any other government program. They are not in trouble. The projection is that the will cost more than is being taken in some time in the future. This is very different.
Your employer pays for medicare and social security and the government pitches in too.
But if you have a war going on for 10 years, you don’t put the money back, hence you get this wonderful no-jobs in America mess.
Also you allow banks to charge exorbitant fees for people who can’t pay for homes they shouldn’t have got loans for, they default, you have this American mess.
And don’t forget you let private industry (starting with Bethlehem Steel) export business overseas at cheaper rates, thereby depriving the American worker his job, the towns go under as mom and pop business close, which give rise to gigantic foreign money business coming here to open strip and colossal malls, whereby the money goes overseas instead of American’s pockets, then you start having big trouble.
As said before, with a 10 year war going on, the money has to come from somewhere. Trillions of dollars are spent supplying weapons to kill our neighbors on the other side of the globe, helicopters, buying of foreign uzi machine guns/bullets/bombs/ak-47′s and the like and the list goes on. Some weapons are produced here but many are bought from foreign countries.
How do you think a Russian Mig gets into American military?
Politicians expect to receive their fat paychecks, billions of dollars are given to big business boss men, where the American public gets fleeced.
And there you have the American dream.
Uncontrolled debt and no end in sight.
You are right the social security and medicare payment amounts do come from employers and and employees that have jobs that pay them wages and also from the honest self employed taxpayer that reports ALL of the gross income that is received on the correctly competed 1040 income tax return.
And again yes the trust funds that are supposed to be in the social security and medicare program have been borrowed by our own government to help pay the expenses that OUR elected officials continue to increase each year instead of trying to spend the amounts wisely.
Hope that you find the above enclosed information useful. 08/15/2011
yes, the funds are withheld from your paycheck and your employer matches your contribution(for 2011 your SS contribution is 4.2% but your employer is still paying the 6.2%)
and yes, the money would have been invested to earn money so that when the person retired, it would have grown
and originally it was never going to be taxed, but thru the 70 years of its existence you can thank Democrats for all of it, the beginning with FDR, Johnson for putting it in the general fund, Clinton for making up to 85% of it taxable
Social Security benefits come from the payroll taxes. I think Medicare is paid through a General Fund. Yes for 30 years the Congress has been using the money for other projects but Social Security still has a surplus which is invested in our own government bonds, $2.6 billion or some figure like that. The politicians cannot take any more from the SS fund. Medicare is under the Social Security Act but its funds are separate and administration is separate. Medicaid and Medicare are run by the same agency but Medicaid funding is usually split between each state and the federal govt.
When you say “modify” you mean cut out some benefits to make them more solvent? That has been happening. The $500 billion will be cut over 10 years out of Medicare Advantage payments to doctors since they were payments for excessive procedures. Recapturing funds that were swindled from Medicare and Medicaid has been successful since 2009. A lot is being done. But with the rush of new retirees in 2012 there may not be enough to sustain the programs that long. This administration never figured on high unemployment and fewer people paying SS taxes. Many other measures will take place like raising the salary cap for people to make contributions to SS and increasing the retirement age which has already happened several times for SS and may be for Medicare.
First of all, Congress established both programs and has the legal right to modify them whenever and however they want. It’s not like money you have put in a bank account for yourself.
The money comes from payroll deductions and from amounts paid in by employers.
Over the years, benefits have been added that exceed the original concepts, and exceed what would be paid for by money paid in, in not many years. Plus as people live a lot longer than they did when ss started, they on average receive benefits a lot longer, so get more than is covered by what they paid in.
It’s a separate issue, although true, that the money paid in doesn’t just sit there waiting to be paid out, it’s borrowed and used by the government. But the calculations of the programs being in trouble is assuming that everything gets paid back. So no, not true that the borrowing is the reason they’re in trouble.