"The 2009 Social Security and Medicare Trustees Reports show the combined unfunded liability of these two programs has reached nearly $107 trillion in today's dollars! That is about seven times the size of the U.S. economy and 10 times the size of the outstanding national debt."
Here's an illustration that shows the lack of sustainability WITHOUT the additional burdens imposed by Obamacare.
- When today's college students reach retirement (about 2054), Social Security alone will require a 16.6 percent payroll tax, one-third greater than today's rate.
- When Medicare Part A is included, the payroll tax burden will rise to 25.7 percent - more than one of every four dollars workers will earn that year.
- If Medicare Part B (physician services) and Part D are included, the total Social Security/Medicare burden will climb to 37 percent of payroll by 2054 - one in three dollars of taxable payroll, and twice the size of today's payroll tax burden!
- By 2020, in addition to payroll taxes and premiums, Social Security and Medicare will require more than one in four federal income tax dollars.
- By 2030, about the midpoint of the baby boomer retirement years, the programs will require nearly half of all income tax dollars.
- By 2060, they will require nearly three out of four income tax dollars.
- By 2050, Social Security, Medicare and Medicaid (health care for the poor) will consume nearly the entire federal budget.
- By 2082, Medicare spending alone will consume nearly the entire federal budget.
- The lowest marginal income tax rate of 10 percent would have to rise to 26 percent.
- The 25 percent marginal tax rate would increase to 66 percent.
- The current highest marginal tax rate (35 percent) would rise to 92 percent!