How to deal with Social Security and Medicare [View All]

[question everything]

These, or course, are the "third rail" of politics. Everyone knows that the funds are bleeding yet no one would have the courage do do anything.

Yes, I know, we waste a lot of money in Iraq but once our troops are back, these funds will be used to reduce the deficit and to fund many other government programs.

We should eliminate these taxes and payments as separate tax and budget items. Too many people who do not pay income tax are burdened with the 7.25% of Social Security and Medicare taxes. They are regressive taxes.

We should incorporate them into the progressive income tax brackets. Thus, if the lowest tax rate is 10%, raise it to 12%. The next is 15%, raise it to 18%, raise 25% to 30% and so on.

And them pay social security to senior citizens according to their means. There are many millionaires or simply wealthy folks who have very generous retirement portfolio. What do they need Social Security payments for? And they can afford to go the top doctors and hospital for their needs. What do they need Medicare for?

Instead, we keep slashing Medicare payments, forcing more and more physicians to not accept Medicare patients, and shifting the costs to regular insured patients.

Yes, I know, universal health should take care of that but... don't hold your breath for its immediate arrival.

Still, universal health will not address Social Security payments.

And if this sounds like - gasp - socialism - well, what is the alternative? Either we believe that as a society people should retire in dignity, or we do not.

I am not an economist. I don't have the numbers lined up, I just think that incorporating taxes and payments into the general funds make more sense. And we should be able to find the language that seniors will not be the first to pay the price for a recession. We can keep future payments in a separate fund, if this is the way to do it, but keep the means testing.