There’s a massive $22.6 trillion crisis hanging over American workers, and surprisingly, it’s barely causing a ripple in the presidential debates. Social Security and Medicare—the lifeblood of millions of Americans—are hanging by a thread, but the candidates seem more interested in making catchy soundbites than addressing this financial catastrophe.
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Tuesday’s debate between Vice President Kamala Harris and former President Donald Trump featured a lot of talk about a variety of issues, but not a word about the crumbling state of the U.S. federal budget. Trump’s bizarre comment, “They’re eating the pets,” went viral, but what millions of Americans care more about is how they’ll survive if Social Security dries up.
According to the Social Security Administration’s trustees, the fund is running a $22.6 trillion deficit. That’s not just any number; it’s the equivalent of $172,000 for every household in the country. Without significant changes, the Social Security Trust Fund is expected to run out of money by 2035. At that point, benefits could be cut by 24.6 percent, leaving retirees in a dire strait.
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“The reality is that if we don’t take action soon, Social Security will be a thing of the past,” one financial expert warned. And the numbers bear that out. The Committee for a Responsible Federal Budget (CRFB) estimates that the average two-income couple could lose about $16,500 a year in benefits if nothing is done.
According to Google Trends, Social Security was the most searched topic during election week. You might expect it to be a central issue during the debate, but the candidates didn’t address it. Harris and Trump insist they want to protect Social Security, but the details remain unclear.
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Harris advocates higher taxes on the wealthy, saying, “We need to make sure that millionaires and billionaires pay their fair share.” The Biden administration has also pushed for a Social Security tax on incomes up to $400,000 for individuals and $450,000 for married couples filing jointly.
Trump, by contrast, has been less specific, denying Democrats’ accusations that he plans to cut benefits while promising to cut taxes if re-elected.
But Social Security isn’t the only elephant in the room. Medicare is in crisis, with a $2.4 trillion shortfall in the fund that pays Medicare Part A benefits that cover hospital bills — and that’s just the tip of the iceberg.
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Future costs for Medicare Part B and Part D — which cover doctor visits and prescription drugs — are rising even faster, and those costs are largely financed through taxes and government borrowing.
Last year alone, Medicare taxes raised $367 billion, but the program spent $1 trillion. By 2048, taxes are expected to cover only a fifth of the program’s costs. Where will the rest of the money come from? More borrowing and more taxes.
The U.S. national debt is already a staggering $34 trillion and is expected to continue to grow. For comparison, in 2000 the debt was $3.4 trillion – yes, that has increased tenfold in just one generation.
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This article The $22.6 Trillion Crisis Neither Harris nor Trump Mentioned, But Is the Biggest Concern for Millions of Working Americans originally appeared on Benzinga.com
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