The Editor:
When describing Social Security (SS) and Medicare programs we see the term “entitlement.” This is very misleading.
Entitlement is defined as “one inherently deserving of privileges or special treatment.” These programs are not entitlements but earned benefits. Americans earn their benefits by working and contributing to these programs throughout their lives. SS, which was created in 1935 during the Great Depression, covers over 94 percent.
Financed through payroll taxes on wages and self-employment income, employees and employers each make contributions equal to 7.65 percent (6.2 percent SS, 1.45 percent Medicare Part A) of earnings for a total tax rate of 12.4 percent contributed to SS and 2.9 percent paid to hospital insurance (Medicare Part A). These are credited to the SS trust funds to pay benefits. In 2021, the trust fund assets paid $56.3 million to 65 million people: 50 million were retired workers and their dependents; 6 million were survivors of deceased workers; and 9 million were disabled workers and their dependents. About 179 million workers had earnings covered by SS and paid payroll taxes.
Strengthening these vital programs and developing a consensus remains a challenge that must be met by the nation’s leaders. Fortunately, decisions in 1983 built up a significant balance in SS trust funds so we have time to develop that consensus.
The 2023 OASI Trustees Report projects that SS trust funds will be able to pay full benefits until 2034. Despite impacts from Covid-related spending, the Medicare Trustees Report continues to show the positive impact of the Affordable Care Act (ACA) on Medicare’s solvency. Part A trust fund is projected to pay full benefits until 2028, rather than the projected insolvency in 2017, prior to the ACA.
Over 50 percent of workers have no retirement plans at work and millions more have little or no retirement savings. SS provides more than $1.6 trillion in annual economic stimulus as seniors spend their benefit for essential goods and services in their communities. Now is the time to strengthen these programs that remain central to the economic well-being of all Americans – those who are retired and those who one day hope to be.
D. Brady Green
Blaine
The Editor:
It seems we islanders are very ill served by the Lummi Island Ferry Advisory Committee (LIFAC) and Whatcom County Public Works Department (DPW). The Lummi Island ferry, or Whatcom Chief ferry, run by DPW, began this year with a surplus in what is called the farebox, the portion that is mandated to come from ticket sales.
DPW whittled away this surplus, by 1) not including $400,000 in federal Covid relief (since included); 2) including billing for $800,000 in a capital expense for “dolphin” installation at the dock, claiming it was included because it is routine maintenance; and 3) over $1 million resulting from 17 years of accounting errors at DPW in relation to state fuel tax. In essence, we islanders and anyone using the ferry are being asked to pay for DPW’s mistakes.
County executive Satpal Sidhu promised me personally in a phone call and indeed promised others that there would be no increase in ferry fares until, I quote, “We get to the bottom of all this.” On April 11, Whatcom County Council introduced an ordinance with the proposed increase in fares. Voters were allowed to attend the meeting but no public hearing was held.
We are, in addition, ill served by LIFAC, a group that purports to represent Lummi islanders, but does not.
Patrick Vincent
Lummi Island
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