CBO on Medicare and Social Security

Chris EdwardsNew Congressional Budget Officeprojections show that federal budget deficits will rise from $1.41 trillion in 2023 to $2.85 trillion by 2033. In 2023, federal spending of $6.22 trillion is 29 percent higher than federal taxes of $4.81 trillion. By 2033, projected spending of $9.95 trillion would be 40 percent higher than taxes of $7.10 trillion. Deficits are projected to explode even though Republican tax cuts are set to expire after 2025.Without budget reforms, accumulated federal debt held by the public will almost double from $26 trillion in 2023 to $46 trillion by 2033. That vast expansion in debt willundermine growth and possibly trigger a  severe economic crisis.The main drivers of rising deficits and debt are Social Security and Medicare, as shown in the chart with CBO data. The combined cost of the two programs for the elderly is projected to leap from $2.35 trillion in 2023 to $4.46 by 2033. By then, spending on the two programs will be four times higher than spending on national defense.To combat the debt problem and avert a  crisis, Congress should restructure Social Security and Medicare. Policymakers in both parties should be studying the programs and offering constructive solutions. Unfortunately, President Biden decided to poison the well for bipartisan reform last week. In the SOTU, hesaid, “If anyone tries to cut Social Security, I will stop them. And if anyone tries to cut Medicare, I will stop them.” Then heescalated his attack against ...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs