McConnell blames "entitlements" as cause for debt caused by tax cuts

[dianee389351]

Why is AARP not all over this???

McConnell Bloomberg Interview on Entitlements, Rising Deficits - Bloomberg
https://www.bloomberg.com/news/articles/2018-10-16/mcconnell-blames-entitlements-not-gop-for-rising-...

[retiredtraveler]

What's so infuriating about this is MM stated for the record, a number of times, that the tax cuts would be 'revenue neutral'. This was repeated by any number of members of congress.

   So here we are and no explanation of why they were so wrong............

[GailL1]

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@retiredtraveler wrote:

What's so infuriating about this is MM stated for the record, a number of times, that the tax cuts would be 'revenue neutral'. This was repeated by any number of members of congress.

   So here we are and no explanation of why they were so wrong............

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09/28/2018'Investor Business - NO, Tax Cuts Are Not Driving Deficits - It's The Spending

Thought I had better give some numbers from the articles 

Each month the Treasury Department releases its tally of federal spending and revenues. The most recent data are through the month of August. Since the federal government starts its fiscal year in October, the latest report includes all but one month of the 2018 fiscal year.

What do the data show?

Through August, the federal deficit topped $898 billion. Over the same period last year the deficit was $674 billion.

So, the deficit is running $224 billion higher this fiscal year compared with last.

But the Treasury data also show that federal revenues through August totaled $2.985 trillion. That's an increase of $19 billion over the previous year.

In other words, despite Trump's massive tax cuts, federal revenues are running higher this year than last.

The problem is that federal spending has climbed even faster. Through August, outlays totaled $3.88 trillion. That's $243 billion more than the prior fiscal year.

read more at the link

[retiredtraveler]

"....Thought I had better give some numbers from the articles....".

You are correct. Can't argue with the numbers.

[wp80408540]

The burden of the massive overspending program by the President and his Republican right supporters was to execute agenda on the backs of the elderly through ultimately attacking "entitlements" cuts as a necessity to balance the budget. By massive spending through corporate tax breaks to "stimulate growth", massive military spending into the most massive miltary struucture in history, agricultural subsidies to almost 2/3 of congress and senate members who claim to be farmers and ranchers, etc. I am a Republican when Republicans could not be found in this state.

If McConnell's statements tonight in "Bloomberg" article does not ring a bell for voting in the midterms; enjoy your cuts to your paid in year's of withholding for social secrity and medicare!

What a country! BTW ask Mc Donnell where his medical care is provided!

[BarryB563933]

Sorry. I don't view Social Security Retirement as an entitlement. I worked and paid into it. I earned it.

[GailL1]

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@BarryB563933 wrote:
Sorry. I don't view Social Security Retirement as an entitlement. I worked and paid into it. I earned it.

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That's the definition of an entitlement - something to which you have a right.

In governement speak that right is describe by law.

A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law.

[BarryB563933]

The problem lies with all the socialist programs that the government has in place and compiles them all together with SS. Then the whole ball of wax is called entitlements. The money that goes to the states for welfare, food stamps, etc. is all a part of it. So, by your definition, every taxpayer is entitled. Go try and apply for some of it. Your SS alone will disqualify you.

[GailL1]

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@BarryB563933 wrote:
The problem lies with all the socialist programs that the government has in place and compiles them all together with SS. Then the whole ball of wax is called entitlements. The money that goes to the states for welfare, food stamps, etc. is all a part of it. So, by your definition, every taxpayer is entitled. Go try and apply for some of it. Your SS alone will disqualify you.

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It is not my definition - it is the government's definition - 

A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law.

It is the law that gives the entitlement, defined as to who based on eligibility criteria in the law - be that Social Security, Medicare, Medicaid, Unemployment benefits - the list goes on - 

Part B and Part D of Medicare is paid for by 75% of the funds coming out of the General Fund - Beneficiaries only contribute 25% of the amount needed to run those programs by their premiums.  If you are basing your definition on "paid into" then could these not be considered predominately welfare programs?

If your spouse never worked and never paid into Medicare or Social Security and as a working spouse, you never paid anymore - your non-working spouse is Entitled by law to benefits - should that be a welfare program instead?

Nothing comes out of Social Security except what is defined by law - Old age, survivors, disability.

If you are talking about SSI ( Supplemental Security Income ), the Social Security Administration only manages this program - all those funds come out of the General Fund and not from Social Security funds.

[j27472l]

Yes they promised that we'd get our social security, we paid into it, but Republicans feel seniors are already getting too many breaks.  We must speak up, or Republicans will take away our healthcare and money for food.

[GailL1]

This does NOT contain Medicaid in the numbers but it will tell you a bit more about why Medicare and Social Security need a big FIX - This 2018 report is almost identical to these same report going back as far as 2012, perhaps earlier.  Problems have been known for a very long time - fewer people working, huge number of baby boomers hitting the system, living longer, there are other reasons too.

2018 Social Security Trustees Annual Report (Summary) on the current and forecasted financial state ...

LIke the Trustees say in this Summary: (exerpts)

. . . .  Both Social Security and Medicare face long-term financing shortfalls under currently scheduled benefits and financing. Lawmakers have a broad continuum of policy options that would close or reduce the long-term financing shortfall of both programs. The Trustees recommend that lawmakers take action sooner rather than later to address these shortfalls, so that a broader range of solutions can be considered and more time will be available to phase in changes while giving the public adequate time to prepare. Earlier action will also help elected officials minimize adverse impacts on vulnerable populations, including lower-income workers and people already dependent on program benefits.

Social Security and Medicare together accounted for 42 percent of Federal program expenditures in fiscal year 2017. The unified budget reflects current trust fund operations. Consequently, even when there are positive trust fund balances, any drawdown of those balances, as well as general fund transfers into Medicare’s Supplementary Medical Insurance (SMI) fund and interest payments to the trust funds that are used to pay benefits, increase pressure on the unified budget.. . . . 

Social Security

. . . . Social Security’s total cost is projected to exceed its total income (including interest) in 2018 for the first time since 1982, and to remain higher throughout the projection period. Social Security’s cost will be financed with a combination of non-interest income, interest income, and net redemptions of trust fund asset reserves from the General Fund of the Treasury until 2034 when the OASDI reserves will be depleted. Thereafter, scheduled tax income is projected to be sufficient to pay about three-quarters of scheduled benefits through the end of the projection period in 2092. The ratio of reserves to one year’s projected cost (the combined trust fund ratio) peaked in 2008, generally declined through 2017, and is expected to decline steadily until the trust fund reserves are depleted in 2034.

Medicare

. . . . The Trustees project that the HI Trust Fund ( Medicare Part A) will be depleted in 2026, three years earlier than projected in last year’s report. At that time dedicated revenues will be sufficient to pay 91 percent of HI costs. The Trustees project that the share of HI cost that can be financed with HI dedicated revenues will decline slowly to 78 percent in 2039, and will then rise gradually to 85 percent in 2092. The HI fund again fails the test of short-range financial adequacy, as its trust fund ratio is already below 100 percent of annual costs, and is expected to decline continuously until reserve depletion in 2026.

. . . . For SMI (Medicare Part B) the Trustees project that both Part B and Part D will remain adequately financed into the indefinite future because current law provides financing from general revenues and beneficiary premiums each year to meet the next year’s expected costs. However, the aging population and rising health care costs cause SMI projected costs to grow steadily from 2.1 percent of GDP in 2017 to approximately 3.6 percent of GDP in 2037, and to then increase more slowly to 3.9 percent of GDP by 2092. General revenues will finance roughly three-quarters of SMI costs, and premiums paid by beneficiaries almost all of the remaining quarter. SMI also receives a small amount of financing from special payments by States, and from fees on manufacturers and importers of brand-name prescription drugs.

Conclusion

Lawmakers have many policy options that would reduce or eliminate the long-term financing shortfalls in Social Security and Medicare. Lawmakers should address these financial challenges as soon as possible. Taking action sooner rather than later will permit consideration of a broader range of solutions and provide more time to phase in changes so that the public has adequate time to prepare.

More at at the above link -

 Fixing both Social Security and Medicare isn't gonna fix the whole budget (unified ) but these things + Medicaid would help a lot.  I do not see anyway this Congress could get together to fix these problems - One in power party cannot fix these problems - it takes a big bipartisan effort and lots of compromise.