About 80% of the Unfunded Liabilities of the US Federal Government are in the Medicare Program ($74 Trillion of Unfunded Medicare Liabilities in 2007, which translates into raising taxes by $200K per person — for every man, woman, and child in the US). So Medicare is where to start for restoring fiscal responsibility within the Federal Government.
The US is already spending a higher percentage of its GNP on healthcare than the other industrialized countries. So it would be poor policy to raise US Medicare taxes above the present levels, to pay for runaway Medicare costs in the future.
Several options are available for reducing Medicare costs — such as lowering the cost of prescription drugs in the US, and lowering the cost of Medical malpractice settlements.
As President, I will instruct Congress to reduce the amount of Federal Unfunded Liabilities for the Medicare programs by 30% in the first year of my administration.
Then in the last 3 years of my Presidential Administration, I will ask Congress to take a very careful look at benefit vs cost for every part of Medicare. A few of items which were cut in the first year might be restored in the next 3 years. But overall, I will have Congress reach 50% reduction of Unfunded Medicare Liabilities in the 2nd year of my Administration, 60% reduction in the 3rd year; and 70% reduction in the 4th year of my Administration.
To assure that the Unfunded Medicare Liabilities can be reduced, I will recommend that the Federal Government should offer Performance Bonus pay to all members of the House and Senate. My strategy is to use a carrot-and-stick affair. The Federal politicians’ Income from the Federal Government should be DOUBLED in each year when they hit my rationally-targeted levels for reducing the government’s Unfunded Medicare Liabilities. But their income from the Federal Government should be CUT IN HALF in each year when Congress fails to hit these targets for restoring fiscal responsibility within the Federal Government.
Filed under: Charles Skelley
