Entitlements every body talks about them but no one improves them.
What was that sentence about?
Well let me try to explain in the simplest way I can.
Medicare and Social Security are paid for by direct taxes.
Keep it simple again it is the only tax we workers pay that we are suppose to know what it's for.
That's right we pay FICA and we are suppose to be believe that it pays for Social Security and Medicare not for the army, not to build roads or even pay for Medicaid or unemployment insurance.
Now I can understand lending this money out to help pay for these necessities and to make interest from lending the excess money out.
Unfortunately our politicians (left, right and in between), commentators and too many people who call themselves economist believe that this money is just like any other tax. As I've stated before we have an idiot** problem in this country.
As an ex-auditor I know that commingling of money is a no-no.
Those of us who want to keep Medicare and Social Security solvent, understand that you can't pay for other services including debt service by raiding trust funds.
(1) When you lessen the payout for Medicare and or Social Security to help with the over all budget your raiding the trust fund, that was payed by a direct payroll tax.
The wise man understands that to keep Social Security solvent way into the future, we will have to extend the Social Security payroll tax to cover all pay with no cut off.
(2) Currently we have 106,00 dollar cut off. Now if this isn't a tax injustice I don't know what is.
Maybe, just maybe we should raise the part of the FICA tax that pays for medicare by 1/2 percent.
Instead of cutting the money for things we pay for Medicare maybe we'll be able to have more hospitals, doctors may be able to pay for more staff. Maybe as strange as it may seem we may have more people working by raising taxes.
* I don't know how social security and government health care is payed for in other counties, but my gut feeling is that it's not payed for by direct tax. Maybe the politicians and other buffoons would be a little less likely to go after it.
** It seems that idiots in the United States are proliferating like bunnies.
Sunday, December 11, 2011
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