June 25, 2017

Bixby: Social Security and Medicare Dominate Trump Spending Plan

June 7, 2017
North State Journal

Excerpt

Under the Trump budget, Social Security and Medicare would rise in cost from 8 percent of GDP this year to 9.4 percent in 2027. Combined payroll taxes for Social Security and Medicare Part A would remain flat at 5.8 percent of GDP. Premiums for Medicare Parts B and D are set by law to cover just 25 percent of program costs.

Pledging not to touch Social Security and Medicare leaves both programs on an unsustainable path.

Oddly enough, in putting a rosy glow on its own budget, the administration concedes an important downside to the long-term outlook: “Despite all the progress the budget proposals make toward fiscal goals, some long-term challenges remain, particularly in Social Security and Medicare.”

In other words, the administration acknowledges the problem while proudly proclaiming its intention to do nothing about it.