Why Are We Cutting Social Security And Medicare If We Still Have Surplus Trust Funds?

It seems to me,once again the American people are getting manipulated by politicians from both parties when it comes to Social Security and Medicare.Both trust funds have a lot of money collected over the lifetime of these programs.Unfortunately,both funds have been used to pay for spending programs the country didn't have revenue for instead of their original purpose.Politicians are listing both of these programs as the main cause of the deficit and are discussing ways to reduce benefits and increase requirements.The media has played a substantial role by accepting this perspective and thwarting different responses that reflect the health of both programs.

Social Security's actuaries have long predicted that the program would shift to a cash- flow negative status due to the retiring baby boomers.It also came a little earlier due to job loss,higher applications for benefits and reduced payroll collections due to the Great Recession of 2008.Enemies of Social Security believe this negative flow will cause the government to borrow another half a trillion to accommodate the rise in benefit payment.These enemies like to flip reality and deny that the money was ever saved for future benefits.The SSTF has a $2.5 trillion surplus in U.S Treasury notes just like any foreign country(China)has.The actuaries knew this day was coming so it's time to cash these notes in to pay the old and new citizens receiving benefits.Social Security has enough revenue in it's funds to pay all of the projected beneficiaries until 2035.Also,if the government lifted the cap on income taxed(now at $106,000) and made it more progressive,SSTF could continue paying without end.

Unfortunately,the $2.5 trillion from SSTF have been borrowed since the middle 1980's on numerous programs(especially Department of Defense) and the Treasury Dept. has issued bonds with a guarantee of payment.The government owes the SSTF all the money it has borrowed and the Treasury is no more likely to renege on that obligation than it is to any other bondholder.

Medicare is also a trust fund and receives revenue from payroll deductions for the specific purpose of meeting the health care for citizens over 65 yrs. of age.It has over $380 billion in it's reserve fund to fulfill citizen health needs.It will remain solvent until 2029.Our politicians must commit themselves to the continuation of these healthy programs that are independent of the general federal budget.They shouldn't be part of the current 2011 budget because the trust funds have a tax process to cover their expenditures.If they are removed from the general budget,The Department of Defense percentage of expenditure rises to 48% of the total amount($1,398 out of $2,945 billion).This includes $876 billion for current expenditure and $522 billion for past expenditures(Veteran's benefits and 80% of the interest on the debt created by the military ).