An Ounce of Prevention Is Worth a Pound of Cure

Press Release

An Ounce of Prevention Is Worth a Pound of Cure

It is no secret that I am opposed to the most recent budget proposal passed by the House of Representatives. It is a blueprint for the largest tax increase in American history. But, like my predecessor, current Director of the Office of Management and Budget (OMB) Rob Portman, I am also very troubled by the fact that the budget blatantly ignores the looming entitlement crisis that our nation faces.

On April 23, the Social Security and Medicare Trustees told Congress and the nation what we have already known for quite some time. Growth in entitlement spending, which includes programs like Social Security and Medicare, is unsustainable. In fact, the combined costs of the Medicare and Social Security programs amount to about 40 percent of all federal revenues.

In the next few years, 77 million baby boomers will begin to retire. If no changes are made to slow the growth of entitlement programs, these programs will consume approximately 80 percent of the entire federal budget in thirty years.

Both Social Security and Medicare are funded through specific taxes, the proceeds of which are dedicated to each of those programs. Currently, there are about three workers for every retiree receiving benefits under the programs. Because of this large worker to retiree ratio, the revenue raised from the dedicated tax streams is greater than the actual payments to retirees.

However, as more baby boomers retire, the worker to retiree ratio will decrease and payments will exceed revenues, causing the programs to begin drawing on the trust funds built up over the years. According to the Trustees' report, the Medicare Trust Fund will be completely exhausted by 2019 and the Social Security Trust Fund will only last until 2041.

The years 2019 and 2041 seem like they are a long way off. But the longer we wait, the fewer options exist. We know we must save Social Security and Medicare so beneficiaries continue to receive their checks for generations to come. That is why the time to act is now.

If we act now, we can make changes to the programs in a way that won't affect the benefits that retirees, or soon-to-be retirees, are now receiving. According to Director Portman, "By delaying action and ignoring the problem, Democrats are leaving our children and grandchildren with three bad choices: massive tax increases, huge benefit cuts or substantial debt."

We don't have to leave that legacy to our children and grandchildren. Director Portman believes that "sensible reforms now that slow the rate of growth even slightly will generate substantial future savings that can save these important programs."

He is right. We must act now to save Social Security and Medicare. The Trustees' report drives home the need to take prompt action. I hope the majority is listening.

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