CBS 60min - U.S. Heading For Financial Trouble?

[dex]

U.S. Heading For Financial Trouble?, Comptroller Says Medicare Program Endangers Financial Stability - CBS News
I thought I would get my Social Security and all the other benefits and leave the next generation with the bill - now I'm not so sure.
I saw the piece and it really didn't give a dramatic insight into the size of the problem.
But at least they aired it.

 

[kcowan]

Yes I think there is much ostrich behavior going on. San Franciso is heading for bankruptcy on the escalating costs of their universal health insurance which kicks in for life after only 5-years service: 17M in 1999 and 150M in 2007 projected to grow to nearly 5B and unfunded.

The problem seems to be so huge that no one wants to grapple with it. Unfunded healthcare liabilities, unfunded pension plans, twin deficits, national debt. And then there are the Fannie Maes and Pension Guarantee Corp.

 

[MasterBlaster]

Read some of the comments that follow the article.

People can't get their heads around the magnitude of the problem and fall back on ideological arguments.

These problems will not be addressed until it is forced upon us.

 

[FinanceDude]

Good thing we have Congress to solve this mess..........

 

[Zoocat]

Read some of the comments that follow the article.

People can't get their heads around the magnitude of the problem and fall back on ideological arguments.

These problems will not be addressed until it is forced upon us.

I read some of those comments and felt really baffled. I guess you're right that they are in denial even in the face of the facts presented to them. Not only do they fall back into ideological arguments, but many state that they distrust the government so much they don't believe that this report is the truth. They think it's another scam, that the government has all the money invested and hidden away in some secret account.

 

[Rick S]

Answer might be here?

Let's put our current tax rates in perspective.
This is from Time last week.

Wouldn't the repeal of the Bush tax cuts for the wealthy fix this?

 

[MasterBlaster]

No the repeal of the Bush tax cuts for the wealthy would not fix this? The magnitude of the SS and Medicare deficits are just way way too big. Even if the government took almost all of the income there is just not enough to fund the current system.

And by the way, you need to adjust your chart for the effective tax rates, Nobody paid 70 percent income tax rates even in the 70's. That's because they had deductions up the wahoo. Rich people often paid little tax back then. Or have you forgotten. The other issue not included in this chart is the rapid increase in state and local taxes since then. If you believe that the tax burden has come down since the 70's then you are mistaken.

As with the comments that follow the article, this issue will never be addressed until the bond markets force it upon us. It just gets tied up in ideology, demagoguery and ignorance.

 

[FinanceDude]

No the repeal of the Bush tax cuts for the wealthy would not fix this? The magnitude of the SS and Medicare deficits are just way way too big. Even if the government took almost all of the income there is just not enough to fund the current system.

And by the way, you need to adjust your chart for the effective tax rates, Nobody paid 70 percent income tax rates even in the 70's. That's because they had deductions up the wahoo. Rich people often paid little tax back then. Or have you forgotten. The other issue not included in this chart is the rapid increase in state and local taxes since then. If you believe that the tax burden has come down since the 70's then you are mistaken.

As with the comments that follow the article, this issue will never be addressed until the bond markets force it upon us. It just gets tied up in ideology, demagoguery and ignorance.

Smartest post on this topic so far...........

 

[teejayevans]

It just gets tied up in ideology, demagoguery and ignorance.

Otherwise known as politics...
TJ

 

[renferme]

I feel confident

that Hillary, Nancy Pelosi, and Dirty Harry Reid will fix all our problems immediately after The B*tch gets elected President.

 

[Texas Proud]

And by the way, you need to adjust your chart for the effective tax rates, Nobody paid 70 percent income tax rates even in the 70's. That's because they had deductions up the wahoo. Rich people often paid little tax back then. Or have you forgotten. The other issue not included in this chart is the rapid increase in state and local taxes since then. If you believe that the tax burden has come down since the 70's then you are mistaken.
quote]


The chart is the highest marginal tax rate... and I can tell you that there were many people that got hit with that 70%.... I did taxes back then... What was interesting was that the highest marginal for passive income was 50%, so the 70% was for earned income..

As you point out, the total tax burden was a lot less than that high percentage as there were many deductions etc (and think about that a deduction was worth 70% back then!!!)... but people still hit that bracket easily...

 

[RE-Fin-54321]

Hey everyone,

Just posted this video link in another thread in Young Dreamers, sorry for the repost. I saw the segment on CBS and found David Walker's message very interesting and disturbing, especially when considering it is coming from the man who is in charge of tracking America's revenues, expenses, assets, and liabilities - literally at ground zero for this problem.

Anyway, after I saw the CBS segment I looked around online and found a video of his full presentation. It was given in 2005 at Cal-Berkley and runs an hour in length, but well worth the time.

The Nation's Growing Fiscal Imbalance: Perspectives and Issues with David Walker, Comptroller General of the United States

 

[MasterBlaster]

I watched some of the linked presentation. I was already aware of the things that were presented.

The presentation reminded me of what Ross Perot showed a decade or so ago. Where is Ross when we need him ?

My take on all this is that changes (for the worse) are inevitable to SS and Medicare. They will definitely come, but nobody in Washington is talking about it. Where is some leadership when you need it.

 

[brewer12345]

Where is some leadership when you need it.

Busy commuting jail sentences for cronies, asserting that they aren't part of the executive branch, and claiming that reducing the annual budget deficit to ~$170 billion is a great achievement.

 

[MasterBlaster]

I assume that you are talking about the current (executive) administration.

I won't defend them by any means as they certainly have not addressed the problem seriously. However this problem has been ignored by both sides over several administrations to pursue their own separate agendas.

Meanwhile Rome is burning as the linked presentation shows.

 

[FinanceDude]

I assume that you are talking about the current (executive) administration.

I won't defend them by any means as they certainly have not addressed the problem seriously. However this problem has been ignored by both sides over several administrations to pursue their own separate agendas.

Meanwhile Rome is burning as the linked presentation shows.

So GW is Nero,playing his violin?

 

[renferme]

Busy commuting jail sentences for cronies, asserting that they aren't part of the executive branch, and claiming that reducing the annual budget deficit to ~$170 billion is a great achievement.

The last time I looked:
1. Congress passes the budget
2. Clinton set records for commuting/pardoning jail sentences of convicted felons, eg. Mr. Rich
3. Congress' approval rating is far below Mr. Bush's.
4. The term "liberal" is synonomous with "socialism". Do we want this country to be like Sweden or France or do we really want a democracy ?
I know how Pelosi, Clinton, Reid, and the [deleted] from Illinois that's running for President would answer that question.

 

[teejayevans]

The last time I looked:
1. Congress passes the budget
2. Clinton set records for commuting/pardoning jail sentences of convicted felons, eg. Mr. Rich
3. Congress' approval rating is far below Mr. Bush's.
4. The term "liberal" is synonomous with "socialism". Do we want this country to be like Sweden or France or do we really want a democracy ?
I know how Pelosi, Clinton, Reid, and the muslim from Illinois that's running for President would answer that question.

1. Bush could veto it
2. So it's ok if it less than previous president
3. Reminds of a joke: Bush and Clinton are in the woods, a bear starts
chasing them, Bush starts running, Clinton yells "you can't out run a bear",
Bush yells back, I don't have to out run the bear, just you!
4. Hey, maybe we can become part of the EU!!
TJ

 

[renferme]

1. Bush could veto it
2. So it's ok if it less than previous president
3. Reminds of a joke: Bush and Clinton are in the woods, a bear starts
chasing them, Bush starts running, Clinton yells "you can't out run a bear",
Bush yells back, I don't have to out run the bear, just you!
4. Hey, maybe we can become part of the EU!!
TJ

1. he could veto it, yes; and Congress could insist on a balanced budget,
but they didn't.
2. Not ok, but I think my point has been made. Don't criticize when you've done the same thing.
3. Both sides receive an "F" on my report card.
4. I'm sure the liberals and the drive-by media would like to be in the EU.

 

[FinanceDude]

I think all members of Congress should be removed from office, and made to work in middle-class jobs for a couple years to see how their "policies" affect others...............

They as a group are about as out of touch with reality as a guy who was in a coma for 20 years and just woke up...........

 

[Texas Proud]

I assume that you are talking about the current (executive) administration.

I won't defend them by any means as they certainly have not addressed the problem seriously. However this problem has been ignored by both sides over several administrations to pursue their own separate agendas.

Meanwhile Rome is burning as the linked presentation shows.

but the current administration passed the biggest unfunded liability every in the history of our country... the prescription drug bill..... this will cost us TRILLIONS of dollars.. kind of makes the Iraq war look puny...

 

[F-One]

I guess all those who equate liberals and socialism don't use roads or police or fire departments or public education or state supported universities. And never go to libraries or museums. And do not use those socialistic programs that are mentioned in this thread (medicare and social security). Oh no can't have socialism - be sure not to sign up for medicare or social security when you are eligible. And if your argument is I paid into it already - wake up to the fact that you have been supporting socialism your whole working life, you liberal you.

"Taxes are what we pay for civilized society, including the chance to insure.”
Supreme Court Justice Oliver Wendell Holmes

 

[sharpone]

I guess all those who equate liberals and socialism don't use roads or police or fire departments or public education or state supported universities. And never go to libraries or museums. And do not use those socialistic programs that are mentioned in this thread (medicare and social security). Oh no can't have socialism - be sure not to sign up for medicare or social security when you are eligible. And if your argument is I paid into it already - wake up to the fact that you have been supporting socialism your whole working life, you liberal you.

Give me a choice. The private sector could provide most (if not all) of these services and more efficiently than any bureaucracy.

There are no privately funded museums? Private schools? And before you say that these things would be too expensive, how much more would you have to spend if you didn't have to pay an federal income tax PLUS state income tax PLUS get nickled and dimed spending your already taxed money (sales tax, use tax, registration fees, property tax, the list goes on).

Regarding social security. Give me a choice. I won't take a dime if I am not forced to pay in. If I am forced (by the guys with the guns) to pay in, you better believe I'll take whatever crappy return they are giving me.

Its moot anyway, as I doubt I'll see a dime of our already bankrupt SS system as it is.

 

[Rick S]

"The private sector could provide most (if not all) of these services and more efficiently than any bureaucracy."

Hmmm... let's take roads for example:

Roads -- Funded by "the socialists"
Railroads -- Funded by the private sector

Which would you view as more successful?

 

[renferme]

I guess all those who equate liberals and socialism don't use roads or police or fire departments or public education or state supported universities. And never go to libraries or museums. And do not use those socialistic programs that are mentioned in this thread (medicare and social security). Oh no can't have socialism - be sure not to sign up for medicare or social security when you are eligible. And if your argument is I paid into it already - wake up to the fact that you have been supporting socialism your whole working life, you liberal you.

"Taxes are what we pay for civilized society, including the chance to insure.”
Supreme Court Justice Oliver Wendell Holmes

And I guess you don't realize that we're forced to use the programs set up
by liberals. There is no choice.
Check out the governments in the socialist countries of Europe and then
check out their economies and then compare with the USA.
We're headed in their direction and it's not where we want to be going.
The liberals (socialists) will live to regret it.
.