Should US apply heavy taxes in Health care spending during the Historical Recession to help Medicare Benefits and to Fight Financial Crisis?
It is a major question for now. Senators in United States are banging their heads over it. President Barac Obama is unsure of what to do next and how to tackle the situation?
The deep recession, the worst the country has endured in decades, has resulted in a loss of 5.7 million jobs since it began in December 2007. The unemployment rate hit a 25-year high of 8.9 percent in April.
The administration is pushing Congress to pass legislation this year to extend health care coverage to some 50 million uninsured Americans, preferring to tackle health care before Social Security.
Social Security will start paying out more in benefits than it collects in taxes in 2016, a year sooner than projected last year, and the giant trust fund will be depleted by 2037, four years sooner, trustees reported.The trustees project that the Medicare fund will be depleted by 2017, two years earlier than the date projected in last year’s report.
“Instead of getting existing public programs in order right now, some are saying we should create a new government-run health insurance plan,” Sen. Chuck Grassley, the top Republican on the Finance Committee, said in a reference to the administration’s health care proposals. “When we can’t afford the public health plan we have already, does it make sense to add more?”
Medicare’s condition is more precarious, reflecting the pressures from soaring health care costs as well as the drop in tax collections. The source from yahoo news http://news.yahoo.com/s/ap/20090513/ap_on_bi_ge/us_social_security describes more:
The administration on Monday revised its federal deficit forecasts upward to project an imbalance this year of $1.84 trillion, four times last year’s record, and said the deficits will remain above $500 billion every year over the next decade.