June 23, 2018

Social Security to tap reserves to cover 2018 benefits

09 June 2018, 09:14 | Winifred Adams

Health and Human Services Secretary Alex Azar is one of the trustees overseeing Medicare

Health and Human Services Secretary Alex Azar is one of the trustees overseeing Medicare

Medicare will run out of money sooner than expected, and Social Security's financial problems can't be ignored either, the government said Tuesday in a sobering checkup on programs vital to the middle class.

At this rate, the combined asset reserves of Social Security's twin retirement and disability trust funds would become depleted by 2034, the same as projected a year ago, with 79% of the benefits payable at that time, according to the report. For example, fewer new disability claims have been registered in recent years than previously expected, so the Social Security trust fund for that portion of the program will not be depleted until 2032, rather than 2028.

His $1.5 trillion tax cut program reduced expected revenues for the two programs over coming years, The Wall Street Journal reported.

More than 60 million Americans benefit from both programs, which provide a guaranteed income and healthcare for many retirees and the disabled.

In 16 years, Social Security will have to cut benefits by 21% if lawmakers do nothing to cure the program's long-term funding shortfall. Democrats insist that the programs would remain solvent as long as the rich pay their "fair share", while Republicans claim that they simply need to eliminate "waste, fraud, and abuse" in the federal budget. That means the government will have to dip into the trust fund to keep paying benefits in full.

Ex-Senate Intelligence Security Chief Charged in FBI Leak Probe
The prosecution follows intense pressure from President Trump for the Justice Department to crack down on leaks to the media. Richard Burr (R-NC) said: "We are troubled to hear of the charges filed against a former member of the Committee staff".

Govt seeks explanation from FB over data-sharing issue
However, such reports raise uncomfortable questions about the assurances made by Facebook, the government said. But he defended the now-defunct consultancy's reputation and said he felt victimised.

Republican leaders scrap US Senate's August recess
Trump has routinely accused the opposition party of slow-walking Senate confirmation of his nominees. I'm hopeful we can do this in a cooperative fashion, but we've got lots of tools available".

"The continued delay in enacting legislative repairs renders effective solutions more elusive and poses particular risks to economically vulnerable populations", Charles Blahous and Robert Reischauer, both former public trustees of the Social Security and Medicare Trust Funds, wrote in a joint report published by the Bipartisan Policy Center in advance of the trustees report.

Cubanski also said that Americans with higher incomes and more lucrative Social Security benefits will benefit from federal tax cuts that will lower paycheck deductions.

The trustees also expect Medicare spending "will increase in future years at a faster pace than either aggregate workers' earnings or the economy overall".

"The current trajectories in health spending are both unsustainable and unmatched by increases in quality", Alex Azar, the secretary of health and human services and a trustee of Medicare and Social Security, said Tuesday. The trustees project that Medicare costs will grow from about 3.7 percent of GDP in 2017 to 5.8 percent by 2038, and will continue to rise to about 6.2 percent of GDP by 2092.

Other News

Trending Now

Avengers: Infinity War Extends Theatrical Run In China As It Nears $2B
Normally, you shouldn't put much stock into these internet rumors, but the fact that it was removed so quickly is... interesting. Avengers 4 will release in the United States on May 3, 2019 with both Ant-Man and the Wasp and Captain Marvel premiering before.

No White House invite for National Basketball Association champs, 'we'll see' about Caps
At a news conference on Tuesday, James told reporters , "I know no matter who wins this series, no one wants the invite anyway". LeBron James has no interest in any White House party with US President Donald Trump .

Clever new sound bar is compact, powerful and very smart
The Sonos Beam will feature HDMI ARC, a first for Sonos , as well as Siri voice control and AirPlay 2 . -Tune with Trueplay. You'll be connecting the Beam to your TV's HDMI-Arc port, which will allow your smart TV's apps to shoot sound to the Beam.

Rumoured Liverpool target Manuel Lanzini suffers major injury
Sampaoli originally named a 35-man provisional squad for Russian Federation and will likely select a replacement from the 12 players he dropped for his final group.