By Edward Leone Jr. DMD MBA RFC
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Much media coverage has been dedicated to our economy. Bloomberg News reports quoting a Tax Policy Center report that the President’s 2013 proposed budget will raise taxes for 27% of US households. Media reports state that the Obama plan would raise taxes on the top 2% of tax payers and corporations. It is clear to me that we must expose ourselves to a variety of sources in order to get the true story.
The Social Security Board of Trustees reported last month that the Trust Fund will run dry in 2033 instead of 2037 as projected in earlier reports. After 2033, payroll tax revenue will cover 75% of benefit obligations. OASDI paid out $736 billion in benefits for 2011. These benefits went to 38 million retired, 6 million survivors of deceased qualified individuals and 11 million disabled persons. 158 million people paid the SS payroll tax in 2011 adding up to $564 billion matched by employers. The 2012 maximum income on which payroll tax is accessed will increased to $110,100. The payroll tax cut cost the general fund $103 billion in 2011. These are large numbers, but this program is not sustainable into the very distant future in its current form. What changes will occur and when?
Fuel costs are another problem we are encountering. Our economy thrives on low cost fuels. The current price of petroleum products along with the European economic crisis and individual and business hesitation over future planning could present a further slowing trend in our economic recovery. The Great Recession represented a contraction about 1/2 the size of the Great Depression. Our problem is that we are not seeing a recovery measured by growth in GDP that is representative of other past economic recoveries including the Great Depression 2 years after which GDP growth reached 45% instead of the 2% we are now experiencing. Gasoline pricing increases is a hands on experience for all. It changes consumptive patterns and adds to costs for all products we purchase. We are aware of the geo-political issues which could threaten oil supplies along with issues over exploration, development and refining capacity within US borders. I do not believe that there are many quick fixes for these problems, but the longer we wait to take action, the worse conditions will become.
Another issue which is on the front burner due to Supreme Court activity is Healthcare Reform legislation. I have written about this issue in many past blogs. We do need reform in the areas of delivery of care, third party pay mechanisms and access issues. We do not need to destroy the system we now have. I am seeing steps toward some logical reforms. According to Forbes Publishing, primary care physicians are very concerned about their situation. 50% say they may leave the practice of medicine if other opportunities become available. A creative movement toward a retainer-based relationship between patients and their primary care physicians is a very inventive way to mitigate many of the issues we face regarding access to care and quality of care. Cheap is not the answer. We must invest in our healthcare system. Savings can occur with delivery efficiencies and reductions in defensive medical practices along with individuals’ dedication to life chioces which elevate health status. Prevention is essential!
For the Record:
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Suggested Reading:
Bureau of Labor Statistics Retirement Benefit Access www.bls.gov/
Leonesmoneymonitormonthly's Blog 
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