Entitlements
Entitlement issues are important to our district and to my work in Congress.
Entitlements
Social Security works by taxing today’s workers to pay for today’s retirees. The money current retirees “paid in” during their working years went to pay their parent’s benefits, not to pay their own benefit. In the 1960s, there were 16 workers paying into Social Security for every person receiving benefits. Today, that number has dropped to an average of three workers for each beneficiary. This change in ratio will deplete the “Trust Fund,” therefore requiring General Revenue Funds to meet benefit obligations by 2018 according to the Social Security Administration.
Medicare and Medicaid face the same population-driven problems as Social Security. Their long-term solvency is further weakened by the new healthcare law’s $500 billion cuts to Medicare and the unfunded expansion of Medicaid eligibility. These programs continue to promise more in benefits than they are capable of sustaining with current payroll taxes.
Social Security and Medicare must be protected for current beneficiaries. However, for the purposes of long-term soundness and solvency of these programs, and to manage our national debt, Congress must reform these programs for future generations. The longer we wait to address these challenges, the more severe the economic impact will be on our nation. Each year that goes by without meaningful entitlement reform, we create between $2 and $3 trillion in unfunded obligations to our children.
For more information concerning my work and views on Entitlement issues, please contact my Washington, DC office.
I look forward to your feedback.
Thank you.