Tag: ‘Medicare’

How to Control Entitlements: A Challenge Ike Did Not Face

By :: December 18th, 2012

Yesterday, I described President Eisenhower’s remarkable success in turning  a large deficit in fiscal 1959 into a balanced budget in 1960.  It was one of the biggest fiscal consolidations since World War II.  Although it was a very different time, there are lessons relevant to today’s fiscal challenges.  One is that a president need not […]

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Congress Can’t Avoid Tax Rate Hikes By Closing “Loopholes”

By :: November 13th, 2012

You can tell when Congress and the President have tough choices to make. That’s when they trot out the euphemisms—all aimed at making what they are about to do sound as benign as possible.  Case in point: the impending fiscal cliff. If you listened to President Obama and House Speaker John Boehner’s radio addresses last Saturday, […]

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Social Security & Medicare Lifetime Benefits

By :: November 5th, 2012

How much will you pay in Social Security and Medicare taxes over your lifetime? And how much can you expect to get back in benefits? It depends on whether you’re married, when you retire, and how much you’ve earned over a lifetime. I recently published with Caleb Quakenbush “Social Security and Medicare Taxes and Benefits […]

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Payroll Taxes Cover About a Third of Medicare Costs

By :: June 15th, 2012

I get the impression that many Americans believe Medicare is financed like Social Security. They know that a portion of payroll taxes goes to Social Security and a portion goes to Medicare. So they conclude workers are paying for Medicare benefits the same way they are paying for Social Security benefits. That isn’t remotely true, […]

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Fixing Medicare's Double-Counting Problem

By :: May 18th, 2012

Last week I argued that budgeting for Medicare’s hospital insurance program is flawed. Today, I offer two ways to fix it (and reject a third). Medicare Part A is one of several federal programs that control spending through a “belt and suspenders” combination of regular program rules (the belt) and an overall limit (the suspenders). But […]

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The Fight Over Medicare Double Counting

By :: May 9th, 2012

The recent double-counting dispute isn’t just about politics; it also reveals a flaw in budgeting for Medicare Part A. Budget experts are waging a spirited battle over the Medicare changes that helped pay for 2010’s health reform. In April, Chuck Blahous, one of two public trustees of the program, released a study arguing that the […]

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Will the 2010 Health Law Cut the Deficit or Add to It?

By :: April 10th, 2012

In a new study, Chuck Blahous, who is a public trustee for Medicare and Social Security, concludes that the 2010 health law will add at least $340 billion to the federal deficit from 2012-2021. This is contrary to the official estimates by the Congressional Budget Office, which initially figured the Affordable Care Act would reduce the […]

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Taxes, Health Reform, and the Supreme Court

By :: March 29th, 2012

There is more to the Affordable Care Act than the individual mandate. There are also, for example, taxes. And since this is TaxVox, I thought it would be useful to think about some of those revenue provisions in the wake of the Supreme Court’s three-day hearing on the fate of the ACA. The law includes […]

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Time to End Washington’s Trust Fund Gimmicks

By :: March 16th, 2012

Why do we bother with government trust funds? As the Senate’s just-passed highway bill proved yet again, Congress is turning these funds into little more than accounting shams. In theory, it makes sense to establish special accounts where designated revenues are set aside for a specific purpose. But in practice, Washington is grossly abusing the […]

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Budget Gimmicks Are Alive and Well in the Payroll Tax Cut

By :: February 21st, 2012

The other day, I criticized the unwillingness of Congress to finance the latest extension of the payroll tax cut. Since that blog, the Congressional Budget Office released its estimates of the cost of the entire mini-stimulus, including the so-called “doc fix” and changes in unemployment compensation. And the games were even worse than I feared. […]

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