Full Answer
Did president Obama’s $716 billion Medicare cuts hurt Medicare?
Republicans claim the president’s $716 billion “cuts” to Medicare hurt the program’s finances. But the opposite is true. These cuts in the future growth of spending prolong the life of the Medicare trust fund, stretching the program’s finances out longer than they would last otherwise.
Did president Obama Rob Medicare?
These cuts in the future growth of spending prolong the life of the Medicare trust fund, stretching the program’s finances out longer than they would last otherwise. Mitt Romney has claimed that President Barack Obama has “robbed” Medicare. Rep.
Did Obama take money out of Medicare to fund Obamacare?
So, campaign claims that imply that Obama has taken money out of Medicare, and Medicare won’t ever get it back, are simply not true. At an Aug. 21 campaign stop in West Chester, Pa., Ryan said Obama and the Democrats “turned Medicare into a piggy bank to fund Obamacare.
Does Medicare have $700 billion in the piggy bank?
Unfortunately for Medicare there isn’t $700 billion in any kind of “piggy bank” to “raid.” The trust fund doesn’t have anywhere near that much money — the Part A trust fund only contained $244.2 billion at the end of 2011. And the president can’t actually take money out of the trust fund.
Who was the first president to dip into Social Security?
Which political party started taxing Social Security annuities? A3. The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983.
Did Congress steal from Social Security?
Myth #5: The government raids Social Security to pay for other programs. The facts: The two trust funds that pay out Social Security benefits — one for retirees and their survivors, the other for people with disabilities — have never been part of the federal government's general fund.
What President put Social Security in the general fund?
In early 1968 President Lyndon Johnson made a change in the budget presentation by including Social Security and all other trust funds in a"unified budget." This is likewise sometimes described by saying that Social Security was placed "on-budget."
How much has Congress borrowed from Social Security?
The total amount borrowed was $17.5 billion.
Did Congress borrow money from the Social Security fund?
The federal government hasn't pilfered a dime from Social Security. The fact is that Congress, despite borrowing $2.9 trillion from Social Security, hasn't pilfered or misappropriated a red cent from the program. Regardless of whether Social Security was presented as a unified budget under Lyndon B.
Who borrowed from Social Security?
Not only is every cent the federal government has borrowed from Social Security accounted for, but the government is paying interest into Social Security, thereby improving the health of the program. In 2018, $83 billion in interest income was collected by Social Security.
When did Social Security money start going into the general fund?
The Social Security Trust Fund has never been "put into the general fund of the government." Most likely this myth comes from a confusion between the financing of the Social Security program and the way the Social Security Trust Fund is treated in federal budget accounting.
What did Reagan do with Social Security?
In 1981, Reagan ordered the Social Security Administration (SSA) to tighten up enforcement of the Disability Amendments Act of 1980, which resulted in more than a million disability beneficiaries having their benefits stopped.
When did Social Security get added to the general fund?
Finally, as part of the 1983 Amendments, Social Security benefits became subject to federal income taxes for the first time, and the monies generated by this taxation are returned to the Trust Funds from general revenues--the third and last source of general revenue financing of Social Security.
How much does the federal government owe the Social Security fund?
$2.908 trillionAs of 2021, the Trust Fund contained (or alternatively, was owed) $2.908 trillion The Trust Fund is required by law to be invested in non-marketable securities issued and guaranteed by the "full faith and credit" of the federal government.
Why is Social Security running out of money?
Over the next ten plus years, the Social Security administration will draw down its reserves as a decreasing number of workers will be paying for an increasing number of beneficiaries. This is due to a decline in the birth rate after the baby boom period that took place right after World War II, from 1946 to 1964.
What happens to Social Security if government shuts down?
During a government shutdown, recipients will continue to receive their Social Security and SSI checks. However, a shutdown suspends the issuance of Social Security cards.
Who was the secretary of health and human services who testified before Congress that $716 billion could “both” save Medicare
Kathleen Sebelius, then the Secretary of Health and Human Services, infamously testified before Congress that this $716 billion could “both” save Medicare while funding Obamacare. Only Washington politicians could claim with a straight face to spend the same money twice. President Biden, who has spent the last half-century in Washington, ...
How much did Biden's family plan cost?
But Biden’s “families” plan proposed using some of that same money to pay for his new entitlement expansions, including an expansion of Obamacare subsidies estimated to cost $163 billion over ten years. That would siphon more than two-thirds of the revenue that’s supposed to be going toward Medicare.
Why is Biden's tax provision called unfair?
The very provision Biden’s Treasury Department called “unfair” because they might allow people to “avoid paying their fair share” is one the Bidens used to avoid more than $500,000 worth of taxes in the last four years.
Does Joe Biden value Medicare?
In both his family’s budget and his administration’s fiscal policies, Joe Biden shows he neither value Medicare nor the seniors who rely on it. Chris Jacobs is founder and CEO of Juniper Research Group, and author of the book, " The Case Against Single Payer .". He is on Twitter: @chrisjacobsHC. Photo Global News / YouTube.
Does Biden want to raise Medicare taxes?
President Biden, who has spent the last half-century in Washington, wants to do just that. His budget takes a page out of the Obama playbook, raising Medicare taxes while raiding those additional funds from Medicare to pay for his Obamacare expansion.
Did Biden pay Medicare taxes?
Well, he and his wife dodged hundreds of thousands of dollars in Medicare taxes, the better to fund their luxury lifestyle. Now, as president, Biden wants others to pay the Medicare taxes he avoided — not because he views Medicare as a sacred promise to seniors, but to create a slush fund he can raid to pay for other programs.
When will Medicare become insolvent?
Moreover, at the time of the 2017 tax bill, the Medicare trustees projected that the program’s hospital insurance trust fund would become insolvent in 2029. By contrast, a September report from the Congressional Budget Office calculated that insolvency could occur early in 2024 — roughly three years from now.
How much will Medicare sequester reduce spending?
Back in 2017, the Congressional Budget Office estimated a PAYGO sequester would reduce spending “by roughly $25 billion” per year; growth in the program since then means a sequester would reduce Medicare spending by approximately $30 billion annually in 2022 and subsequent years.
What is the budget reconciliation bill?
On Monday, congressional Democrats introduced a budget resolution calling for an approximately $1.9 trillion budget reconciliation measure, in a move that deviates from President Biden’s efforts at achieving bipartisanship on increased COVID spending. It also could have significant knock-on effects, as current law and Senate procedure mean that a Democrat-only reconciliation bill could reduce Medicare spending to fund subsidies for the affluent.
What is the cap on sequester reductions?
The most prominent reductions would come to Medicare. The PAYGO law places a 4 percent cap on sequester reductions to hospitals, physicians, insurers, and other Medicare providers (beneficiary cost-sharing would be unaffected).
How many votes does the Republican Tax Cuts and Jobs Act require?
The 2017 Republican Tax Cuts and Jobs Act faced a similar dilemma, an offshoot of passing the bill through reconciliation, rather than normal procedures requiring 60 Senate votes. The statutory PAYGO law requires the Office of Management and Budget to keep a running tally of the fiscal impacts of all enacted legislation.
Does Biden have to take action on Medicare?
The looming insolvency threat reinforces the need for entitlement reform. Still, Biden has shown no signs of taking action, beyond avoiding nearly $400,000 in Medicare taxes himself, while diverting Medicare funds to expand the welfare state will only make our current dilemma worse.
Does PayGo eliminate Social Security?
It’s worth noting, however, that PAYGO exempts many mandato ry spending programs, including Social Security and major welfare programs, from a sequester. Yet the annual sequester required to offset $1.9 trillion in spending could effectively eliminate many smaller mandatory programs, including funding for several agriculture ...
How many people did Medicare cover in 2017?
programs offered by each state. In 2017, Medicare covered over 58 million people. Total expenditures in 2017 were $705.9 billion. This money comes from the Medicare Trust Funds.
What is Medicare Part B?
Medicare Part B (Medical Insurance) Part B covers certain doctors' services, outpatient care, medical supplies, and preventive services. and. Medicare Drug Coverage (Part D) Optional benefits for prescription drugs available to all people with Medicare for an additional charge.
How much did the Medicare cuts hurt?
Republicans claim the president’s $716 billion “cuts” to Medicare hurt the program’s finances. But the opposite is true. These cuts in the future growth of spending prolong the life of the Medicare trust fund, stretching the program’s finances out longer than they would last otherwise.
How much money did Obama take from Medicare?
At an Aug. 21 campaign stop in West Chester, Pa., Ryan said Obama and the Democrats “turned Medicare into a piggy bank to fund Obamacare. They took $716 billion from Medicare to pay for their Obamacare program.”.
How does a cut help the Medicare budget?
How a Cut Helps the Medicare Budget. To some voters, it may sound counter-intuitive at first to think that cutting money from Medicare would improve, not weaken, its finances. But, again, this is a reduction in the future growth of Medicare spending over 10 years. And spending less is a good thing for Medicare’s finances — as it is ...
What percentage of Medicare will be covered in 2024?
The Medicare trustees say that the tax “would cover only 87 percent of estimated expenditures in 2024 and 67 percent in 2050.”. And that’s only Part A. Physician and drug costs, which are covered by Parts B and D, are covered by general revenues and premiums paid by seniors.
How much money did the Affordable Care Act save?
The biggest savings from the Affordable Care Act come from reductions in the future growth of payments to hospitals — about $415 billion over 10 years. That’s Medicare Part A. Income for Part A comes mainly from payroll taxes.
Can Obama take away Medicare bonds?
The fact remains that Obama can’t take away the Medicare trust fund bonds. But both the nonpartisan Congressional Budget Office and Richard Foster, Medicare’s chief actuary, have said that the law can’t extend the life of the trust funds and pay for other measures at the same time.
Does the Affordable Care Act cover Medicare?
The Romney campaign’s real complaint is that the Affordable Care Act counts those Medicare savings as money that can cover other aspects of the law. But the money can’t pay for two things at once.
How much money did Pelosi take from Medicare?
A bill that the Pelosi-led House passed in late June would take $448.2 billion in Medicare savings to fund additional Obamacare subsidies.
How much did Joe Biden's wife pay in royalties?
In 2017 and 2018, Joe Biden and his wife Jill reported nearly $13.3 million in book royalties and speaking fees as profits from two S-corporations rather than taxable wages. This questionable tax maneuver allowed them to avoid paying payroll taxes on the millions they reported as corporate profits. Of the more than half a million in payroll taxes ...
Did Obamacare hurt Medicare?
In reality, the law worsened Medicare’s fiscal future. By taking funds out of Medicare to pay for new entitlements, Obamacare diverted funds that could have improved the program’s financial soundness and stability. Worse yet, Democrats claimed that these savings would both extend Medicare’s solvency and fund Obamacare.
Did the Democrats take Medicare to pay for Obamacare?
The Democrats Raided Medicare to Pay for Obamacare. You don’t have to take my word for it on this one — House Speaker Nancy Pelosi (D-CA) admitted it herself. In a 2011 interview with CNBC, she said that Democrats “took half a trillion dollars out of Medicare” to fund Obamacare.
When did Social Security get pilfered?
First of all, there's the period between 1968 and 1990, which is believed to be when Congress pilfered America's top social program. What needs to be understood here is that, while Social Security's two trusts (the Old Age and Survivors Insurance Trust and Disability Insurance Trust) and its asset reserves were technically "on-budget," funding ...
How long was Social Security on budget?
This means at no point over this 22-year period where Social Security was on-budget did a dime of Social Security income, benefits, or asset reserves get commingled with the federal government's General Fund.
Why is Social Security facing a huge cash shortfall?
One of the more common theories as to why Social Security is facing a huge long-term cash shortfall is that lawmakers in Congress have pilfered cash from the program and never returned it. This idea goes all the way back to 1968, when then-President Lyndon B. Johnson made a change to how the federal budget would be presented.
How much is Social Security shortfall?
According to the latest report from the Social Security Board of Trustees, Social Security is staring down a $13.9 trillion cash shortfall between 2035 and 2093, with the expectation that its $2.9 trillion in asset reserves will be completely exhausted in ...
What has Congress not done?
What Congress hasn't done is steal from Social Security. However, lawmakers have known of the program's shortcomings since 1985, and have yet to find a middle-ground solution to fix it. If you want to point the finger at lawmakers, do so because bountiful solutions exist, but political hubris appears to be getting in the way.
What was the President's Commission on Budget Concepts?
Prior to 1974, before Congress had an independent budgeting process, the President's Commission on Budget Concepts had three separate budgets, all of which had differing deficits. To simplify things, Johnson called for Social Security and its trust funds to be included in the annual federal budget. In 1983, the Reagan administration voted ...
How much interest did Social Security get in 2018?
In 2018, $83 billion in interest income was collected by Social Security. If the folks who believe that Congress stole from Social Security got their way, and the federal government repaid every cent it borrowed, Social Security would have lost out on this $83 billion in interest income in 2018.
Is the trust fund backed by the federal government?
The trust fund may be backed by the “full faith and credit of the federal government,” as defenders constantly remind us, but if it had real assets the president wouldn’t be talking about seniors missing their checks.
Is Social Security Trust Fund fully funded?
In other words, the Social Security trust fund contains—nothing.”. Social Security status-quo defenders have assured us for the past 25 years that Social Security is fully funded—for the next 25 years, or 2036. So if there are real assets in the Social Security Trust Fund—$2.6 trillion allegedly—then how could failure to reach a debt-ceiling ...
Does Social Security have a trust fund?
Here’s why: Social Security has a trust fund, and that trust fund is supposed to have $2.6 trillion in it, according to the Social Security trustees . If there are real assets in the trust fund, then Social Security can mail the checks, regardless of what Congress does about the debt limit. President Obama’s budget director, Jack Lew, explained all ...
