care Debacle Numbers

Medicare Debacle Numbers

Edwin J. Feulner: Medicare's future

But my colleagues here at The Heritage Foundation have been running the numbers. Economists Brian Riedl and William Beach recently wrote that, should either bill become law, a baby born today would inherit, in 2030, an extra tax burden averaging $1,125 per household. And that whopping bill, which would only get larger in subsequent years, is simply for the proposed drug benefit; Elizabeth’s generation will have to pay still more to keep Medicare and Social Security afloat even without it.

In 2030, she’ll be on the hook for a 15.3 percent Medicare payroll tax, plus $2,855 in extra taxes needed to cover the shortfall in the current Medicare program. These taxes also will rise over the next 40 years, which means Elizabeth will be so busy paying for everyone else’s retirement she won’t be able to save up enough money for her own.

What would Elizabeth get for all that spending? Nothing. All of it would go to provide retirement support for older generations. Other governmental obligations won’t go away, either. Elizabeth will have to pay still more in taxes to run the government and provide a military to protect ourselves.