Dark clouds hover over the nation’s finances and threaten a perfect storm of massive debt and crushing taxation unless Congress starts acting—soon. Washington must demonstrate that it is serious about reining in ever-rising spending and reducing annual deficits. Passing commonsense reforms to our major entitlement programs (Medicare, Medicaid, and Social Security), the main drivers of future spending and annual deficits, is crucial. As the population ages and health care costs rise, spending on entitlements is projected to more than double by 2050, as this Heritage Budget Chart Book chart shows. …
President Obama and Republicans in Congress continue to wage war over an extension of the payroll tax cut. But missing from the debate is any discussion of comprehensive tax reform that would eliminate payroll taxes altogether. Social Security and Medicare payroll taxes are the second-largest source of federal revenue, surpassed only by personal income taxes. This week’s chart from Heritage’s 2011 Budget Chart Book depicts federal revenue by source. That chart would look quite different if Heritage’s tax-reform plan were enacted into law. That plan, part of the Saving the …
Senate Finance Committee Republicans have some good advice for the Joint Select Committee on Deficit Reduction (sometimes known as the super committee): Fix Social Security now. As part of a 21-page comprehensive set of recommendations on issues under Finance Committee jurisdiction, the Republicans note that “Social Security reform, aimed at solvency and integrity of the program, and not for near-term deficit reduction, needs to occur as soon as possible and should not be delayed.” Further, the recommendations note: Reform of the Social Security program to ensure sustainable solvency and protection …
In its latest video railing against reform of Medicare and Social Security, AARP pushes for a pinch hitter to solve Washington’s spending problem—and a poor one at that. The organization charges Congress to cut wasteful spending and close tax loopholes instead of reducing Medicare and Social Security benefits. Once again, they get it wrong on how to balance the budget and put the nation on a fiscally sustainable path. Congress can work to eliminate waste, fraud, and abuse to demonstrate it is serious about controlling spending and using taxpayer dollars …
Sen. Mike Lee (R-UT) came to Washington as the a tea-party conservative with the goal of fixing the economy, addressing the debt crisis and curbing the growth of the federal government. It’s an uphill battle for the youngest member of the U.S. Senate, but one he’s prepared to fight. Lee’s recent book, “The Freedom Agenda: Why a Balanced Budget Amendment is Necessary to Restore Constitutional Government,” outlined his goals for changing Washington. (Listen to our recent podcast.) Yesterday at Heritage, he delivered the annual Helms Lecture, detailing his opposition of …
While some of the press stories might make one think that Bernie Madoff ran Social Security, the reality is quite different. Although Social Security does bear a resemblance to a Ponzi scheme in that it has promised much more in benefits to younger Americans than it can possibly pay, these shortcomings can be fairly easily fixed if political leaders are willing to face up to the challenge. Ponzi schemes cannot be fixed, since they are criminal enterprises designed to fleece participants. However, rhetorical flourishes aside, the recent Social Security debate …
Last week’s presidential debate at the Reagan Library elevated Social Security as a national issue that could reshape the 2012 campaign. Candidates spent the week trading blows about the role of the 76-year-old social insurance program. Leaving aside the political rhetoric, one thing is certain: Social Security needs to be reformed or America will face a dismal future. As one of the three major entitlement programs — along with Medicare and Medicaid — Social Security is contributing to a very dire long-term budget outlook. Spending on the three entitlement programs …
Social Security took center stage at last night’s Republican presidential debate, emerging as a key issue among candidates at the Ronald Reagan Presidential Library in California. Not since President Bush’s ill-fated attempt to reform the social insurance program in 2005 have Republicans talked this much about Social Security. Of course, it’s hard to ignore. Social Security is the largest federal program. It pays out $700 billion to about 60 million Americans. Leaving aside the political attacks from last night’s debate, the candidates on stage at least agreed that Social Security …
With continuing unemployment problems driving more and more Americans to seek Social Security disability benefits, that program’s already weakened trust fund faces a bleak future. Just as unemployed older workers have been forced to apply for Social Security retirement benefits much earlier than they expected, thousands of other unemployed people who have disabilities, or hope that they might qualify, are applying for Social Security Disability Insurance (SSDI) benefits. SSDI benefits are somewhat more generous than retirement benefits and turn into retirement benefits once the recipient reaches full retirement age. In …
Catching you up on clips, commentary and news of the day. Sign up for the daily email update from Scribe. A Politicized Justice Department Strikes Again – Hans von Spakovsky, National Review Online Social Security lies on super committee’s chopping block – Dorothy Zhang, Daily Caller Obama ‘No Child’ Waiver Proposals Rile Conservatives – Mallie Jane Kim, U.S. News & World Report Poverty Debate Raises Tension Between Obama and Black Leaders – Steven Gray, Time Block grants designed for needy end up in wealthier communities – Maureen Groppe, Indianapolis Star After …
