How long can the US continue funding Medicare, Social Security and Wars?
The day is coming when the federal government will not be able to fund all three of its major financial outlays — Medicare, Social Security and war making. Somewhere in 2008 the federal government will begin an inevitable downward financial spiral. Cutbacks in Medicare spending and extending the age to receive social security benefits will still not stave off the looming catastrophe. The Heritage Foundation makes us aware that, beginning in 2008, the Social Security cash surplus begins to decline. In 2018 the annual benefit costs exceed cash revenue from taxes. In 2028 the trust fund ceases to grow because even taxes plus interest fall short of benefits. And by 2042 the Social Security trust fund will be exhausted and only 73—81% of benefits could be paid. Payroll taxes would have to be raised to 60% of income to pay for Social Security near mid-century to meet all obligations. Growing out of debt fallacy Growing the economy out of this problem would require double-digit economic growt
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