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Page 4 · column 2 of 7 · from the scan, no model involved
A question of financing
As the nation’s population ages, there has been increasing concern in’ recent years for the health of the government’s Social Security and Medicare funds. However, he said the problems lie not in the funding for the programs, but with the use of the money once it is collected. The Social Security program, which between employee and employer collects 14 percent of wages up to $45,000, is in good shape, he said. v
Medicare, which was set up as a trust fund, about 20 years ago was made a part of the federal line budget. Therefore, when appropriations were not finished on time, the federal treasury borrowed money from the fund to keep the government going. That has now been outlawed, and Rep. Slaughter said he favors reestablishing Medicare’s trust fund status. “Medicare benefits are paid by the contributors... the law specifies they are separate . . . they should be paid out separately.”
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