Republican Senator Mike Rounds of South Dakota issued a dire warning about the future of Social Security and Medicare if Congress does not act soon.
President Joe Biden has recently made a strong case against Republicans by emphasizing his support for Social Security and Medicare.
US Lawmakers Under Pressure Over Social Security, Medicare
The president has seized on a proposal from Florida Republican Sen. Rick Scott to sunset federal legislation, including Social Security and Medicare, every five years and require Congress to reauthorize it.
During a speech in Florida last week, Biden referred to his “spirited debate” with Republicans at the State of the Union, calling Scott’s idea “outrageous” and vowing to veto such a measure.
Last week, Scott told CNN’s Kaitlan Collins that his proposal aims to minimize wasteful spending and assist the government in “figuring out how to start living within our means.”
Rounds also emphasized on Sunday that Republicans want to strengthen Medicare and Social Security rather than take them away from the American people.
It is the primary social safety net program in the United States. Workers contribute a percentage of their earnings, which is then distributed as benefits to the elderly, Americans with disabilities, and their survivors.
The retirement age, or the age at which workers can receive the entire benefit, ranges from 66 to 67. Those who postpone receiving Social Security until they reach the age of 70, on the other hand, receive larger payments. Workers can begin receiving benefits at a reduced rate at the age of 62.
Medicare is the federal government’s national health-insurance program for adults over the age of 65, as well as certain younger people with disabilities or chronic illnesses. The majority of the program’s funding comes from payroll taxes, general federal revenue, and the premiums patients pay for coverage.
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US Benefits Dilemma
People are living longer, healthier lives than they did when the programs were established, and Americans are paying less in taxes.
According to the World Bank and the Centers for Disease Control and Prevention, life expectancy in the United States climbed from 61 years in 1935, when Social Security was established, to 70 years in 1965, and to 77 years in 2020. This means that people are spending more time retired and more money on health care.
As a result, both initiatives are nearing the end of their funding. According to one federal analysis, Social Security will have to start paying decreased benefits by 2034 to make up for the gap.
According to another set of federal forecasts, the Medicare Hospital Insurance Trust Fund, a leading indicator of the program’s financial sustainability, will run a deficit by 2028.
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