Income taxes pay expenditures for our military, veterans, education, government salaries, transportation and welfare. Social Security, Medicare and Unemployment and financed by Payroll Taxes. Liberals like to include Social Security, Medicare and Unemployment in "spending for the poor" because that disguises how much of our Income Taxes is actually being spent on welfare.
It;s scary what our Federal Budget looks like when we separate Payroll Taxes and Income Taxs. Payroll taxes make up about 42% of our budget income and income taxes make up the other 52% of our budget.
Entitlements
Entitlements are benefits or services that some or all individuals are entitled by law to receive from the government. Entitlement programs can be Contributory or Non-contributory, and can be based on means-testing or not. Entitlements require payments from the federal government to eligible recipients, and they are part of the Mandatory Spending in the federal budg
Contributory Entitlements
Contributary Entitlement Programs include Social Security, Medicare and Unemployment insurance. Social Security provides retirement and disability benefits, Medicare provides health care for the elderly and Unemployment Insurance provides benefits to working age adults out of work. Social These are contributory entitlements and are not to be confused with "means-tested entitlements."
All working Americans and their employers fund these programs through payroll taxes (FICA) as defined by federal law. While the programs are an "entitlement" available to all Americans, in order to qualify for benefits recipients must have worked and made contributions to the programs through payroll taxes. Unless you are disabled, you cannot collect from Social Security until you are 62 years old and the amount you can collect depends on what you paid into the fund.
To qualify for Social Security Disability benefits, you must first have worked in jobs covered by Social Security. Then you must have a medical condition that meets Social Security's definition of disability.
Non-contributary Entitlements
Welfare Programs are non-contributary and "means-tested entitlements." They include 13 separate welfare programs to fight poverty and the Medicaid Program which provides health care to low-income Americans. Welfare Programs and Medicaid are non-contributory entitlements, meaning recipients are entitled to the benefits even though they have made no contributions to the programs through taxes.
Welfare Programs are targeted to low-income individuals and families. While these programs are an "entitlement" available to all Americans, in order to qualify for benefits recipients must be "means-tested" to show their means are below a cutoff. Only low-income Americans qualify for these benefits.
Contributory Entitlement Programs are not Socialistic. You must pay into them to collect. Non-contributary Entitlement programs, on the other hand, can be considered socialistic where you get something for nothing.
The Federal Budget
There are two types of spending in the federal budget process: discretionary and mandatory. Mandatory spending is ongoing. It does not take place through appropriations legislation and so it occurs each year without a change in an underlying law that provides the funding. Mandatory spending includes "entitlement" programs, such as Social Security, Medicare, and required interest spending on the federal debt.
Discretionary spending, on the other hand, will not occur unless Congress provides the funding through an appropriations bill each fiscal year (which begins October 1st). This spending is an optional part of fiscal policy, in contrast to "entitlement" programs for which funding is mandatory. Military spending is an example of discretional spending.
A note about Medicare financing. Medicare is financed by payroll taxes (FICA), general tax revenue, and premiums paid by enrollees. The Medicare trust fund comprises two separate funds. The hospital insurance trust fund is financed mainly through payroll taxes on earnings and income taxes on Social Security benefits.
Medicare Part A (hospital insurance) is supposed to be self-funding like Social Security, but Part B (supplemental medical) was always funded partly by beneficiary premiums and partly by funds from some Social Security taxes and interest on investments. Part D (prescription drugs) is also funded like Part B.
Can Social Security and Medicare funds be "borrowed" to pay off debts?
Tax income from payroll taxes (FICA) is deposited on a daily basis and is invested in "special-issue" securities. The cash exchanged for the securities goes into the General Fund of the Treasury and is indistinguishable from other cash in the general fund.
In other words, Social Security and Medicare are part of the general fund and mandatory spending. As "entitlements," the government cannot take them away from you. You WILL get those benefits regardless of where the government has to get the money.
[1] Social Security Funding
[2] Medicare Part D
It;s scary what our Federal Budget looks like when we separate Payroll Taxes and Income Taxs. Payroll taxes make up about 42% of our budget income and income taxes make up the other 52% of our budget.
Entitlements
Entitlements are benefits or services that some or all individuals are entitled by law to receive from the government. Entitlement programs can be Contributory or Non-contributory, and can be based on means-testing or not. Entitlements require payments from the federal government to eligible recipients, and they are part of the Mandatory Spending in the federal budg
Contributory Entitlements
Contributary Entitlement Programs include Social Security, Medicare and Unemployment insurance. Social Security provides retirement and disability benefits, Medicare provides health care for the elderly and Unemployment Insurance provides benefits to working age adults out of work. Social These are contributory entitlements and are not to be confused with "means-tested entitlements."
All working Americans and their employers fund these programs through payroll taxes (FICA) as defined by federal law. While the programs are an "entitlement" available to all Americans, in order to qualify for benefits recipients must have worked and made contributions to the programs through payroll taxes. Unless you are disabled, you cannot collect from Social Security until you are 62 years old and the amount you can collect depends on what you paid into the fund.
To qualify for Social Security Disability benefits, you must first have worked in jobs covered by Social Security. Then you must have a medical condition that meets Social Security's definition of disability.
Non-contributary Entitlements
Welfare Programs are non-contributary and "means-tested entitlements." They include 13 separate welfare programs to fight poverty and the Medicaid Program which provides health care to low-income Americans. Welfare Programs and Medicaid are non-contributory entitlements, meaning recipients are entitled to the benefits even though they have made no contributions to the programs through taxes.
Welfare Programs are targeted to low-income individuals and families. While these programs are an "entitlement" available to all Americans, in order to qualify for benefits recipients must be "means-tested" to show their means are below a cutoff. Only low-income Americans qualify for these benefits.
Contributory Entitlement Programs are not Socialistic. You must pay into them to collect. Non-contributary Entitlement programs, on the other hand, can be considered socialistic where you get something for nothing.
The Federal Budget
There are two types of spending in the federal budget process: discretionary and mandatory. Mandatory spending is ongoing. It does not take place through appropriations legislation and so it occurs each year without a change in an underlying law that provides the funding. Mandatory spending includes "entitlement" programs, such as Social Security, Medicare, and required interest spending on the federal debt.
Discretionary spending, on the other hand, will not occur unless Congress provides the funding through an appropriations bill each fiscal year (which begins October 1st). This spending is an optional part of fiscal policy, in contrast to "entitlement" programs for which funding is mandatory. Military spending is an example of discretional spending.
A note about Medicare financing. Medicare is financed by payroll taxes (FICA), general tax revenue, and premiums paid by enrollees. The Medicare trust fund comprises two separate funds. The hospital insurance trust fund is financed mainly through payroll taxes on earnings and income taxes on Social Security benefits.
Medicare Part A (hospital insurance) is supposed to be self-funding like Social Security, but Part B (supplemental medical) was always funded partly by beneficiary premiums and partly by funds from some Social Security taxes and interest on investments. Part D (prescription drugs) is also funded like Part B.
Can Social Security and Medicare funds be "borrowed" to pay off debts?
Tax income from payroll taxes (FICA) is deposited on a daily basis and is invested in "special-issue" securities. The cash exchanged for the securities goes into the General Fund of the Treasury and is indistinguishable from other cash in the general fund.
In other words, Social Security and Medicare are part of the general fund and mandatory spending. As "entitlements," the government cannot take them away from you. You WILL get those benefits regardless of where the government has to get the money.
[1] Social Security Funding
[2] Medicare Part D
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