Medicare taxes do not cover full value of what you have paid
When our retirement comes, we want to taste everything worth the amount of taxes we have paid for. However, in an updated financial analysis, it has been revealed that you are not likely to get closer to the full value of the medical care that you expect.
Economists Eugene Steuerle and Stephanie Rennane of the Urban Institute said that putting money into the system does not guarantee you to collect it in the long run. If compared, however, Social Security taxes and their expected benefits are the ones that come closer to the desired value. So if a couple retiring in 1011 has paid $614,000 in Social Security taxes, they are likely to get 90 percent of what they paid.
The estimates from the Urban Institute are part of what Steuerle his group has been trying to explain to blur out the complications in terms of Medicare and Social Securilty finances. The team tries to update it periodically so that taxpayers could have a grasp of what is happening.
The money collected from Medicare payroll of workers is actually used for paying the bills of seniors who are currently enrolled on the program. Most people do not know this and this results to complications and conflicts for policymakers who are trying to build political support.
The costs for the health care and Medicare are among the major erratic part of the government’s budget problems. Because of this, some programs are being phased out and replaced with a fixed payment that will assist future retirees in buying their own private plan.