MILLER: Simple entitlement reform

Small change in Social Security/Medicare retirement age saves billions

Illustration: Entitlements by A. HUNTER for The Washington Times.

Rick Perry’s exit from the presidential race Thursday left the field with one less reformer willing to take on the single most important budgetary issue: entitlements. Social Security and Medicare’s growing liabilities are driving this nation toward a Greek-style debt crisis. Politicians know the current system is unsustainable and that raising the retirement age is a necessary reform. Few are brave enough to risk doing the right thing.

Democrats have tried to scare seniors into thinking the slightest adjustment to these programs will send them over the proverbial cliff - even though nobody is suggesting changes that would affect anyone currently over the age of 55. The reality is Social Security and Medicare are outdated and must adapt to the baby-boom generation’s longer life spans and increased health care costs. The full retirement age for Social Security is 66 years, just one year more than it was when FDR set up this Ponzi scheme.

As Mr. Perry pointed out during the campaign, Social Security was not created with the idea that Americans would live 15 or more years beyond retirement. In the 1940s, life expectancy was 61 years for men and 65 for women. Now, it’s 76 for men and 80 for women. While we’re all happy to see our parents and grandparents live much longer lives, each senior in retirement is being supported by only three younger workers. That’s why we have to borrow so much money to keep the government checks in the mail.

Republican front-runner Mitt Romney understands the problem. “I’d also add a year to two to the retirement age under Social Security,” the former Massachusetts governor said in the Fox debate on Monday. He would adjust how benefits are indexed for inflation and wealthier Americans. Former Pennsylvania Sen. Rick Santorum would do the same. Texas Rep. Ron Paul wants to shuttle the whole program after paying out to current retirees.

Medicare’s eligibility age of 65 years has not changed at all since the program began in 1966. Mr. Romney supports “a slightly higher retirement age” and shifting the program to the premium-support optional plan that was recently crafted by House Budget Committee Chairman Paul Ryan. Unless something is done, Medicare’s own trustees say it will go belly-up in only eight years.

The Congressional Budget Office (CBO) said last week that raising the Social Security retirement age gradually to 70 would reduce outlays 13 percent. Raising Medicare’s age gradually to 67 would reduce costs by 5 percent. Small changes in age mean billions in savings. As a side benefit, raising the retirement age means people would stay in the work force longer, increasing the output of the economy. In turn, that would also lead to more tax revenue in Washington to help balance the budget.

Doing nothing is no longer an option. The only alternatives to raising the eligibility are reducing benefits and hiking taxes on younger workers. Our next president needs to be someone who realizes those aren’t acceptable options.

Emily Miller is a senior editor for the Opinion pages at The Washington Times.

Obama calls GOP Medicare, spending plans 'radical' (Obama's plan, your medical records on Facebook)… Really?

Is this really where you want your medical records stored… on Facebook… the social network that works hand in hand with the government and retains the right to keep any information that you post there… photos, posts, etc, even after you close your account?  This is beyond frightening!!

Pablo Martinez Monsivais  /  AP  -  Members of the audience listen to President Barack Obama and Facebook CEO Mark Zuckerberg during a town hall meeting to discuss reducing the national debt, Wednesday, April 20, 2011, at Facebook headquarters in Palo Alto, California

PALO ALTO, California — President Barack Obama said Wednesday that congressional Republicans are pushing a radical plan to trim Medicare and Medicaid, ramping up the rhetoric as he and Congress approach crucial decisions on spending and the nation's debt.

"I think it's fair to say that their vision is radical," Obama told a town hall gathering at the headquarters of Facebook, the huge social network company.

"I don't think it's particularly courageous," he said of the GOP plan to convert Medicare to a voucher program and make big cuts to the federal-state Medicaid program for the poor.

"Nothing is easier than solving a problem on the backs of people who are poor, or people who are powerless, or don't have lobbyists, or don't have clout," Obama said.

The president wants to be friends on Facebook

Other Democrats have called the GOP plan radical, but the president generally has used less pungent language. Even as he sharply criticized the Republicans' spending

proposals Wednesday, he said he believes the two parties can reach an accord on long-range plans to cut deficits by about $4 trillion over the next decade.

Obama made the comments in a friendly environment — one with 19 million friends, in fact. He told Facebook employees and others watching online the nation must invest vigorously in education, clean energy and research that are vital to future jobs and a strong economy.

Making the case for his own deficit-cutting plans, Obama said that one way to trim health care costs could involve doctors sharing medical information on Facebook, the hugely successful social network.

Obama's 2008 campaign used Facebook and other social networks to reach voters, volunteers and donors, especially among young adults. Such outlets will play even bigger roles in next year's campaigns.

The president shared the stage with Facebook's youthful founder, Mark Zuckerberg, whose company noted that 19 million network users have electronically "liked" Obama's White House Facebook site.

Obama, beginning a three-day Western tour pitching his budget plans and raising re-election cash, said trimming $4 trillion from the nation's deficits over the next 12 years sounds like a lot but can be done.

He will hold another session Thursday in Reno, Nev., with his message that his approach to cutting deficits is more balanced and less painful than a rival House Republican plan.

The president has proposed cutting spending, raising taxes and squeezing federal health care programs. The Republican plan rules out tax cuts and would achieve nearly $6 trillion in savings from spending cuts and overhauling Medicare and Medicaid.

The Associated Press 2011

 **  Seniors… Please do not fall for the hype and misinformation!!  Anyone who is now on Medicare or Social Security, or is 55 or older, will not be affected by any of the upcoming changes proposed by the GOP, including Paul Ryan’s Plan.  And if people under 55 want to have some safety net for themselves and generations to come we must make some changes, or they will have nothing! The greatest thing you have to fear that ObamaCare will go into full implementation.  That is your nightmare!  And unfortunately, it will not happen until after the 2012 Election, just like the inflation and Wall Street are being manipulated, until the day after election, when all our worst nightmares will be unleashed.  Do your own homework.  Read the ObamaCare Bill that was passed or seek information that is coming from neutral sources… which is not AARP or the mainstream media news coverage.  Like Facebook, NBC especially, is practically a subsidiary of the White House.   **

Urgent Petition: Repeal ObamaCare!