Tuesday, November 27, 2012

THEY ARE LYING




As the country nears the dreaded, though fictional fiscal cliff some blabber is turning toward Medicare cuts. Let me tell you here and now, no matter what you hear, no matter what they may be saying, they are lying.

No, nobody's “stretching the truth”. Nobody is putting any “spin” on it. THEY ARE LYING. Get that? All it takes is some very simple research to get the truth. No part of the fiscal cliff involves Medicare. Here's the undeniable, indisputable truth.

Directly from the government's own website. “Medicare is paid for through two trust fund accounts held by the U.S. Treasury. These funds can only be used for Medicare.” And where do those funds come from? Again, from your government's own website. “Payroll taxes paid by most employees, employers, and people who are self-employed. Other sources, such as income taxes paid on Social
Security benefits, interest earned on the trust fund investments, and Part A premiums from people who
aren’t eligible for premium-free Part A.”

Know what you're contribution to medicare is? It's 1.45% of your income. It's part of your payroll tax (the other part is 4.2% for social security). Your employer pays a matching amount. Everybody with a job pays it...at least as far as I can determine. There's probably some exceptions involving civil servants (there always is) and some other deals arranged by special interest groups that we never were told about. But, in general, every week the government collects 2.9 cents for every dollar paid to every person who has a job...regardless of their wages. If you work for minimum wage at McDonald's, part time, you will pay 1.45 cents out of every dollar you earn. Mickie Dee will pay an additional 1.45 cents. So even if you work 10 hours a week at $7.50/hour you will pay $1.08 in federal taxes specifically to fund Medicare. And the people writing the check will match that. That also holds true if you're an investment banker earning the magical $250,000 a year. That 1.45% comes out to $3,625 plus the matching contribution from the firm they work for. And, by the way, those leeches on disability? They pay that 1.45% federal medicare tax, too. And the federal social security tax. I mention that only in passing and to point out that anyone repeating the blatant lie that “47% of the population don't pay any federal taxes” is an ignorant fool. And you're being played big time.

So when it comes to cutting government spending what's the point in focusing on Medicare? It's a separate fund. The government says so. Last year, Medicare spent $549,000,000,000 to help 48,700,000 Americans. We've spent over $800,000,000,000 on the war in Iraq with no funding for it. It was all borrowed money. The problems facing Medicare are mostly fabricated. Because of high unemployment the fund isn't collecting as much as it should. The current lie is based on the assumption that employment won't increase substantially in the near future and wages won't go up. If I have to explain how that works to you, maybe you should join the Tea Party.

The simple (non-political) solution is to “temporarily” raise the Medicare tax. Think your paycheck can take the hit? The kid working the drive-thru probably won't miss another buck o eight from their check. But think of all the damage it might do if Billy Gotbucks has to pay another $3,625. That might effect his annual tax deductible contribution to the GOP. Is there an alternative? Of course. Instead of doubling the tax how about a 50% increase? And why not tax all income at the same rate? You know, investment income. Hell, if we just taxed investment income at the current 1.45% rate there would be no need to raise anybody else's rate.

Take Mitt Romney for example. In the last two tax returns he allowed the public to see he earned over $42,600,000, most of it in capital gains. Most of it was not subjected to the 1.45% medicare tax (if any). Overall he paid about 14% in taxes. Including his Medicare taxes and Social Security taxes in to that may bump it up to 15%...less then you probably paid. Try as I might, I'm not seeing how paying the full 1.45% on all his income would alter his life style. So how about that? Instead of raising the tax rate how about everybody paying the same rate on all their income? The kid at the fast food joint and the multimillionaire all pay the same rate. The same penny and almost-a-half on every dollar earned. And millions of fellow citizens get medical care. I don't see a downside. But your Congressman does.

We're headed for a fiscal cliff and the only way to avoid it is to cut medical care for those that need it most. I can't imagine the stupidity involved in making that assessment. How Medicare is even involved in the issue defies rational explanation. But then again, we're talking about Congress. There's no component of the National Debt involving Medicare except for the part where the government borrowed the excess funds and has to pay it back. It's clear that anybody even mentioning Medicare as part of the solution is nothing more then a liar.




0 Comments:

Post a Comment

<< Home