Hospitals & Asylums 

 

 

Health and Welfare (HAW)

 

To supplement Chapter 3 National Home for Disabled Volunteer Soldiers §71-§154. Revenues have stalled out at $2.5 trillion FY 17- FY 19. The FY 17 surplus was sabotaged by a -5% decline in individual income tax growth from an average annual rate of 8% 1990-2016 to 2.7% FY 17, 4.6% FY 18 and 1.7% FY 19. 8% individual income tax revenue growth must be restored by fulling funding the Internal Revenue Service (IRS) $13 billion with 3% annual growth from FY 16, rather than $12.3 billion. Customs must sell migrant workers social security number travel documents for <$10 under Art. 1 Sec. 9 Cl. 1 of the US Constitution. 26USC§4611(b)(1)(B) and the letter (A)' must be repealed and Subsection (c)(3) appended to provide that all energy exports shall be taxed at a rate of 6% of wholesale value. The Federal Reserve should lower interest rates to highest rate able to return more than last year. FEMA is advised to solicit matching funds from county permits, and construction loans, before and after a disaster. In the final week of FY 18 there was an estimated $40 billion to pay $90 billion in arrears, prioritizing $30 billion welfare and energy arrears with the [$14,294 billion debt ceiling under 31USC§3101 (2018)]. Because the actual amount of debt is disputed, the new debt ceiling should be [$500 billion] more than the previous year [$14,794 billion] to encourage the passage of the SSI tax on the rich, [$666 billion] [$14,960 billion] untaxed, to ensure CR 19 takes accurate measure of CMS and limits DoD spending to no more or less than 3% growth from CR 18. Spending growth by the military departments must be limited to 3% by FY 20. 2.6% military pay-raise propaganda is overruled by a 2% pay-raise + 1% net new employees = 3% annual increase in payroll. Budget cuts, collective expulsion of immigrants, sanctions, propaganda to induce volunteers in the armed forces and donor fatigue are all prohibited by the Fourth Geneva Convention Relating to the Protection of Civilians (1949). By removing [student loans savings] in brackets from the President's education budget total, FY 17 will be finally enacted. Congress must pay 2.5% annual growth in outlays for government and energy, 3% for services, education and health, 3.3% for food stamp, 4% disability and 6% for the OASI. Low income workers and beneficiaries need a 3% COLA every year inflation runs 2.5% - 3%, and the trust fund ratio is >20% to re-interpret Sec. 215(i) of the Social Security Act under 42USC§415(i). Federal minimum wage must be amended from $7.25 an hour to '$7.50 in 2019 and 3% more every year thereafter.' under 29USC§206(a)(1)(D). To end child poverty by 2020 tax loopholes for Title I and the rich in Section 230 of the Social Security Act under 42USC§430 must be repealed. The 12.4% OASDI and SSI payroll tax on all income would be distributed 2.3% SSI 2.1% DI 8.0% OASI. The due date for the Annual Reports must be amended from April 1 to the 'summer solstice June 20-21' in Sec. 1161 of the Social Security Act under 42USC§1320c-10. To alleviate pressure driving perennial OASI outlay overestimates, prematurely declaring a combined trust fund deficit beginning in 2018, the DI tax rate must be retroactively amended to 2.1% beginning in 2018 under Sec. 201(b)(1)(T) of the Social Security Act under 42USC§401(b)(1)(T) before the expiration of the Bipartisan Budget Act 1 January 2019.

 

Be it enacted in the House and Senate Assembled

 

1^st ed. 15 Sept. 2004, 2^nd 1 June 2005, 3^rd 18 June 2006, 4^th 17 June 2007. 5^th 12 June 2009, 6^th 31 July 2010, 7^th 17 Aug. 2011, 8^th 14 July 2012, 9^th 26 July 2015, 10^th 7 Sept. 2015, 11^th 17 Sept. 2017, 12^th 21 Sept. 2018, 13^th 12 November 2018

 

1. Title 24 US Code Chapter 3 National Home for Disabled Volunteer Soldiers, in preserved only in Subchapter V Battle Mountain Sanitarium Reserve under 24USC§151-154. The timetable with respect to the congressional budget process for any fiscal year is set forth under 2USC§631. After two years, the President has finally produced OMB Historical Tables in .pdf and Excel, in time for the supplemental budget request deadline of July 16, 2018. The statutory debt limit at the end of fiscal year 2018 was $14,294 billion under 31USC§3101. Because the actual amount of debt is disputed, the new debt ceiling should be $500 billion more than the previous year [$14,794 billion] to encourage the passage of the SSI tax on the rich, $666 billion [$14,960 billion] untaxed, to ensure CR 19 takes accurate measure of CMS and limits DoD spending to no more or less than 3% growth from CR 18. Spending growth by the military departments must be limited to 3% by FY 20. 2.6% military pay-raise propaganda is overruled by a 2% pay-raise + 1% net new employees = 3% annual increase in payroll under Art. 51 of the Fourth Geneva Convention Relating to the Protection of Civilians (1949). By removing [student loans savings] in brackets from the President's education budget total, FY 17 will be finally enacted. The longer action to deal with the nation’s long term fiscal outlook is delayed, the greater the risk that the eventual changes will be disruptive and destabilizing. Over the past two centuries, debt in excess of 90% of GDP has typically been associated with average growth of 1.7%, versus 3.7% when debt is low (under 30% of GDP). An international study, covering the experience of forty-four countries over two hundred years, found that economic growth slows substantially when national debt climbs over 90% of GDP. In 2009 the national debt of Greece reached 115% of GDP. Within a year the international markets refused to lend the Greek government any more money by buying its government bonds resulting in a trillion-dollar bailout financed by EU taxpayers. High debt loads make it more expensive to borrow and weakens global financial position.

 

Actual Debt FY 15 – FY 20

 

Source: President, Congress, Social Security Administration and Hospitals & Asylums

 

2. Revenues have stalled out at 2.5% trillion FY 17-FY 19.  The hypothetical FY 17 surplus, that might have been evident with OMB's 12% margin of error by FY 18 – FY 20, was sabotaged by decline in individual income tax growth by -5% from an average annual rate of 8% 1990-2016 to 2.7% FY 17, up to 4.6% FY 18, before the loss of $25 billion in taxes from threatened federal government layoffs, already overruled by the federal Court, is expected to drive revenue growth down to 1.7% FY 19.  OMB has an unreliable method outlay deflators that get the present wrong and are wildly inaccurate regarding the future with low growth FY 19 followed by high growth FY 20, in line with individual income tax estimates, all of which must be overruled for 3% growth, to create a conservative estimate for revenue reform to improve upon.  BEA Quarterly reports 2.2% 1^st quarter, 4.4% 2^nd quarter for 3.3% economic growth in 2018 and is projected to average 3% thereafter.  The stock market is booming.  Employment is up, unemployment down.  The federal government needs to stop attempting to cut IRS funding and staffing and collect legal tax revenues.  There is a negative trend in tobacco tax and interest rates are driving down Federal Reserve deposits remitted to the Treasury. Fuel and health insurance excise taxes are booming. The truth drives up the historical outlays for Homeland Security for nearly the same customs revenues. By removing [student loans] in brackets from the concurrent resolution, the FY 17 deficit will be finally enacted. Due to zero on-budget revenue growth FY 17 – FY 19 and low off-budget payroll tax FY 17, it is necessary for the Senate to reject arrears FY 18 and agree only to CR 18 and HA 18 Department of Health and Human Services deficit reduction by advance appropriation and most accurate CMS or Trustee estimate, and adjust for the OASI outlay overestimate with a 2.1% DI tax rate for the intermediate projection, to create an actual off-budget surplus with which to tax the rich fairly for an SSI Trust Fund to end child poverty by 2020 and all poverty by 2030.

 

Actual Receipts, Outlays, Surplus or Deficit FY 16 – FY 20

(billions)

 

Source: President, Congress, Social Security Administration, Hospitals & Asylums

 

3. On-budget revenues are estimated to remain at $2.5 trillion FY 16 - FY 19. Aside from a moderate annual decrease in smoking since the unfair tobacco tax act of 2009, the reason for the stagnation in total revenues is a 5% slowing in the growth of individual income tax from an average annual rate of 8% to 3% due to repressive immigration policies, and major decreases in revenues from corporate, estate and gift taxes under the TCJA and a decrease in Federal Reserve Deposits remitted to the Treasury due to interest rate hikes from an all- time low of 0.25% 2009-2016. The Tax Cuts and Jobs Act, Public Law 115-97, was enacted on December 22, 2017. The Federal Reserve is highly recommended to reduce interest rates to 0.25%-0.5% in order to sustain growth in Federal Reserve Deposit remittances to the Treasury. There is no denying at 9% growth Historical Tables FY 17 overestimated revenues FY 17 however current revenue estimates, do not add up and have never accurately distinguished between on and off-budget payroll taxes and total off-budget revenues, slightly underreporting total and on-budget revenues. OMB must abandon the 1.8% FY 19 growth and 6.1% FY 20 growth method of expressing the range of uncertainty in economic projections and aim to please with fully financing IRS employment to achieve an annual rate revenue growth greater than 3% annually, under the TCJA.  Federal revenues have historically grown at a significantly faster rate than the general economy or federal spending. 8% average individual income tax revenue growth is the only reason that previous budget balancing efforts were even moderately successful at reducing the deficit to within 3% of GDP, with outlays increasing 2.5% for government, 3% for services and in-kind-welfare and 4% for cash welfare. Between 1990 and 2018 revenues grew an average annual rate of 8.0%. If there had not been a decline in revenues a federal budget surplus was predicted as soon as FY 17 and by FY 18 and no later than FY 20 without improved methods of accounting. In the past 10 years between FY 08 and FY 18 revenues grew an average annual rate of 3.2%. Before revenue stagnation began to affect individual income tax receipts in FY 16 and spread to total revenues FY 17 and FY 18, in the five years between the years FY 11 - FY 15 revenues grew an average annual rate of 8.2%. Current tax rates of the TCJA should sustain better than 3% revenue growth, to as high as 8% growth with full employment of the IRS, progressive immigration policy and voluntary 1% UN contribution tax. The payroll tax would increase OASDI revenues 30%; total revenues would increase 7.7% more than 3% to 8%, 10.7% to 15.7%, if the OASDI maximum taxable limit were repealed to tax the rich to end child poverty by 2020 and all poverty by 2030.

 

Composition of Revenues FY 16 - FY 20

(millions)

 

Source: OMB Historical Tables FY 19 Tables 2.1, 2.4 and 2.5; 2018 Annual Report of the Board of Trustees of the Federal Old Age Survivor Insurance Trust Fund and Federal Disability Insurance Trust Fund; Manfreda, John J. Alcohol and Tobacco Tax and Trade Bureau Annual Report Fiscal Year 2017. pgs. 93 & 94; US Customs and Border Protection. 2016 Performance and Accountability Report. CBP Collections by Major Processing Port Locations. pg. 170. Duke, Elaine. Acting Secretary. Department of Homeland Security. FY 2017 Agency Financial Report. pg. 47, Federal Reserve Banks Combined Financial Statements as of and for the Years Ended December 31, 2017 and 2016 and Independent Auditors’ Report. March 8, 2018

4. Before it is possible to begin adding Outlays by Agency Table 4.1 of the Historical Tables: Other Defense – Civil Programs, Other Independent Agencies (On-budget and Off-budget), Allowances, Off-budget Undistributed Offsetting Receipts, and new Infrastructure Initiative row, need to be prohibited by law. International Assistance Programs, that must be added to State Department outlays to be properly represented. These outlay row are fictitious, agency to a sub-agency or another agency, if they exist at all. In normal years, when Allowances aren't abused, these zero-sum errors incur a 2.5% margin of error in OMB Table 4.1 Outlay by agency table. These rows need to be deleted. Department of State and International Assistance rows need to be added together by the State Department, whereas that is how they are reported, and International Assistance Programs row deleted. Overall Table 4.1 is historically about 12% overestimated and must be subjected to a methodical review of Cabinet agency congressional budget justifications to determine exact outlays pursuant to Art. 1 Sec. 8 Clause 1 of the US Constitution. The President's budget cut proposals have resulted in some significant underestimates for some non-defense programs, most significantly in the case of International Assistance programs unrepresented by either State Department or continuing resolution and also because congressional suffrage of zero pay growth attempts to legitimize no growth. The President's unwarranted budget cuts to provide hyper-inflationary outlays for armed services, rather than to balance the budget, constitutes advocacy of the overthrow of the government by force, resulting in increasing deficits, declining revenues and economic growth slowdown. No President's budget has ever been subjected to such significant reconciliation by Congress. The insufficiency of the continuing resolution process and congressional budget rules, has never been so evident. It is unfortunate that the unpopular Congress has lawlessly voted against a raise in their salaries since 2009. Zero growth sets dangerous precedence for the congressional defense against the President's unprecedented budget cuts. In light of the significant reductions in deficit and debt due to the accounting accuracy of this report, the Treasury must choose between financing either the haphazard Congressional resolutions, with an unlawful zero growth policy, inadequately defending against the President's cruel and unusual budget cuts or arrears for normal growth from FY 16. Either option costs less than current OMB total outlay over-estimates or debt ceiling accommodating the President's tall tales. To exact a budget surplus in the future the President and Congress must agree to a 2.5% government, 3% services and 4% cash benefit growth rule from FY 16 while inflation remains 2.5% - 3% to help new workers, raises and promotions sustain 8% individual income tax growth with only 3% economic growth.

 

Government Outlays by Agency Ledger FY 16 – FY 20

(billions)

 

Source: HA. OMB Table 4.1 Outlays by Agency FY 19; 2018 Annual Report of the Board of Trustees of the Federal Old Age Survivor Insurance Trust Fund and Federal Disability Insurance Trust Fund, 2018 & 2019 working Baby Boomer overestimates redressed 4% FY 18, 4.5% FY 19 and 4.5% FY20 with 3% COLA beginning FY 19

 

5. Undistributed offsetting receipts are agency revenues remaining from the previous year that are used to pay for the following year budget to reduce outlays by the General Fund. Only five agency budget justifications produce reliable undistributed offsetting receipts, the Departments of Defense, Education, Health and Human Services, Interior and Corp of Engineers – Civil Programs. Because there is a final rule for estimating undistributed offsetting receipts, embedded in the most recent agency congressional budget justifications over-ruling the President's budget, OMB on budget estimates are overruled and off-budget undistributed offsetting receipts row deleted. The Department of Agriculture will have the last $1 billion of their rescission of outlays for phenomenal growth in unbracketed loan and utility program levels spent by FY 20. USDA must however discover and return undistributed funds from their SNAP overestimates in the FNS and USDA budget, to get to the root of their duty to pay for 3% annual SNAP growth. Elementary and Secondary Education and Medicaid declare Advance Appropriations in their budget tables, with explanation that these savings are used to pay for the difference between the school year and the fiscal year and to pay for the beginning of the next year medical claims. The federal government needs to pay all the outlays, but the deficit is reduced by the amount of the undistributed offsetting receipts, because the Treasury does not actually have to pay these claims during the fiscal year. The Corp of Engineers – Civil Programs budget vacillates between the sound financial strategy of openly declaring precisely $1 billion in undistributed offsetting receipts and total incompetence, but having once made the declaration, predictably produces $1 billion undistributed offsetting receipts annually as the cornerstone of their federal outlay total. The Departments of Defense and Interior budgets are impaired by the failure to openly declare undistributed offsetting receipts in their budget overview. The Defense Department produces undistributed offsetting receipts with the difference between the levy for total war and the outlays of the three military departments – Air Force, Army and Navy. The Department of Interior turns a tidy profit with $11.7 billion in federal outlays, every year during this Administration and must pay 2.5% growth for public land agencies and 3% growth for Indian Affairs.

 

Undistributed Offsetting Receipts FY 16 – FY 20

(millions)

 

Source: USDA FY 17 – FY 19; DOD FY 17 – FY 19; Interior FY 17 – FY 19; Centers for Medicare Medicaid Services FY 19; Army Corp of Engineers FY 18.

 

6. There are two reliable ways to sustain economic growth in a liberal market economy. First, by subsidizing the poor with welfare programs to generate consumer economic growth with a minimum of inflation. Second, by reduction of force, to liberate the economy from armed invasion, as in the Application of the International Convention for the Suppression of the Financing of Terrorism and of the International Convention on the Elimination of All Forms of Racial Discrimination (Ukraine v. Russian Federation) No. 2017/11 9 March 2017. The Authority for Employment of the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA) Senior Executive Service under 5USC§3151-3152 must be repealed. The current corruption of the FBI that most warrants disability retirement is drug enforcement under 28CFR§0.85 and Iron Curtain politicization under §0.87. Budget requests for the DEA are cut back every year because they constitute murder for hire between the fentanyl adulteration and drug robbery and are the quintessential federal program that needs to be abolished to legalize marijuana. The Forest Service, Stafford Subsidized Student Loan and ICE are new to the list of federal agencies that are substantially justified. These days, everyone knows it is economically and theologically necessary for the federal government to legalize marijuana and reduce the use of force by abolishing the FBI, DEA and Interagency Drug and Crime Task Force under Art. 1 and Forest Service under Art. 5 of the Slavery Convention of 1927. ICE needs to be abolished under Art. 22 of the Convention on the Protection of Right of All Migrant Workers and their Families (1990). The FDA Center for Tobacco Products and proposed National Institute for Disability, Independent Living and Rehabilitation Research need to be terminated under the Nuremberg Code. It is furthermore of vital importance, to reduce the risk of rampage shootings, that [Stafford Direct Student Loans] report their savings, revenues and program level in brackets, Stafford Subsidized Student Loans must be abolished, and under no circumstance should student loan collections be solicited. Excessive compensation of university presidents must be invested in student loans with at least 20% grant component to begin to redress hyperinflation in tuition. The primary concern is that the lethal fentanyl tampering of prescription opiates by the DEA since 2001 has spread to heroin since 2014 and is covered up in federal court by drug robberies with particularly unconstitutional mandatory minimum sentences for the victims in flagrant violation of Blakely v. Washington (2004), 18USC§1512 and Sec. 301 of the Food, Drug and Cosmetic Act under 21USC§331. Maximize revenues by minimizing murder under 18USC§1111. Disability retirement must fully defend these federal agencies against corruption under 5CFR§351.803, 5USC§3504 and 5USC§8337.

 

Prohibition of Terrorism Finance FY 17 – FY 20

(millions)

 

Source: Congressional Budget Justifications FY 19

 

7. Civil action for damages has been instituted to redress Public and Indian Discrimination (PAID) under 24CFR§1.8 (d, c) and 28CFR§0.47 under Art. 19 of the U Charter.  1. $550 million arrears and $85.7 million current year are due to the United Nations Educational, Scientific and Cultural Organization (UNESCO) and another $500 million to ensure Contributions to International Organizations, including the United Nations, the international government itself, grow 2.5% annually, $1.2 billion FY 19 under Art. 19 of the U.N. Charter. After reviewing only Human Services Related Welfare Programs, CR 18 owes an estimated total of $27 billion arrears FY 18 in an emergency budget supplemental to prevent any continuation of the President's budget cuts and adopt 2.5% growth for government 3% growth for services, food stamps, in-kind welfare and 4% growth for TANF and SSI cash benefits. $11.4 billion of FY 18 arrears are in international assistance, $2.5 billion ACF, $2.2 billion Education, $2.9 billion Supplemental Nutrition Assistance Program, $67 million Indian Affairs, $43 million Indian Housing, $564 million International Contributions including $550 million for UNESCO, $1 billion for USCIS, State and ACF refugee assistance, $1.5 billion for rental assistance and $4.5 billion unemployment compensation. The United States owes welfare programs an estimated $27.1 billion arrears FY18 after CR 18 and an addition additional $52.5 billion welfare arrears FY 19 if the President's budget cuts are not laboriously overturned. Energy Department cuts must be redressed at 2.5% growth from FY 16. Refinancing the deficit and debt to pay 2.5% government, 3% services and 4% cash benefits arrears from FY 16 settled at the end of FY 18 is the first way for normalized budget levels from FY 16 to reduce the deficit in the beginning of FY 19 under Art. 19 of the UN Charter.

 

Welfare and Energy Arrears FY 18 – FY 19

(millions)

 

Source: Congressional Budget Justifications FY 19

8. The only exceptions to the FY 16 base year for calculating arrears are the better of FY 11 or FY 16 for UNESCO dues to discrimination against Palestine and FY 14 for SNAP.  Congress has a duty to authorize $1 billion to be paid to UNESCO and the Palestine UNRWA school year at the end of FY 18 + FY 19 program levels estimated at 3% annual growth from the better of FY 11 or FY 16, to be paid in full, forever Palestine. Having initially failed to defend international assistance in CR 18, Congress must adopt a Palestine-as-International Military Finance for Israeli Defense Force massacres of Palestinians and 75 political prisoners sentenced to death in Egypt - goes prohibited for terrorism finance under 18USC§2339C, 2USC§632(b)(8), §633(g) for Congress to pay UNESCO and Palestine $1 billion before the end of FY 18. The UN Relief and Works Agency has served Palestinian refugees since the creation of Israel in 1948. The U.S. has long been the organization's largest donor, but the decision to cut the $600 million budget $300 million leaves a funding gap in UNRWA of more than $273 million for the remainder of the year.  The $1 billion FY 18 year-end settlement leaves Palestine with $364 million + 3% annual growth from the better of FY 11 or FY 16.  The settlement for 4 years of totalitarian famine of SNAP benefit that should grow 3% annually is 5 years of 4% growth in benefit amount to afford 2.7% average consumer price index inflation and 1.3% population growth.  0.3% population growth from 3% annual growth might not be enough and the right rate of food stamp outlay growth might be 3.3% annually to afford 0.6% population growth.  International agricultural assistance must be stabilized from 3% annual growth from FY 16 to shore up interdepartmental cooperation and stop totalitarian pressures on the State Department.  The State of Food Security and Nutrition in the World: Building Climate Resiliency for Food Security (2018) by the Food and Agriculture Organization (FAO) reports after a prolonged decline, the most recent estimates showed global hunger increased in 2016. In 2017, the number of undernourished people is estimated to have reached 821 million – around one person out of every nine in the world. Although stunting is decreasing 151 million children under five have stunted growth, while the lives of over 50 million children in the world continue to be threatened by wasting. Undernourishment and severe food insecurity appear to be increasing in almost all sub-regions of Africa, as well as in South America, whereas the undernourishment situation is stable in most regions of Asia. The right way to cook stir-fry in a wok with oil, is to serve it on plain rice left-over in a pot with a lid, to prevent morning mush. The Treasury has a duty to pay compensation for the evidence miscarriage of justice detaining a shipment of economic aid for North Korea although economic sanctions may target only military concerns regarding terrorism under 18USC§2339C. In 1996 Soviet agricultural assistance was terminated and 6 million North Koreans starved to death in a totalitarian famine. Congress must repeal 22USC§7204 that entraps the President and Treasury to be impeached for 'economic sanctions' against trade, agriculture and medicine, in contravention to Common Article 1 of the Covenant on Civil and Political Rights and the Covenant on Economic, Social and Cultural Rights. Congress owes USAID the lion’s share the end of FY 18 debt settlement, $11.4 billion FY 18 and 3% annual growth from FY 16 thereafter, beginning FY 19 under Art. 19 of the UN Charter.

 

OASDI Trust Funds 2018

(billions)

 

Source: 2017 & 2018 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds

 

9. The 2017 and 2018 Annual Reports agree to overestimate OASI outlay growth. Under the Trustees’ intermediate assumptions, Social Security’s total cost is projected to exceed its total income in 2018 for the first time since 1982, and remain higher throughout the projection period, as the result of this 6% overestimation of OASI outlays in 2018. 2018 OASI outlays should be 5% more than 2017 with a 2.0% COLA in 2018, due to 2.4% OASI population growth and 0.6% increase for full retirement benefits of the Baby Boomer generation. Without an actuarial deficit resulting from perennial current year OASI outlay overestimation of 3% COLA, 2.4% OASI population growth and 0.6% full retirement costs, or negative fluctuations in average annual 6.5% growth in payroll tax to afford 6% OASI outlay growth, there will be no actuarial deficit in 2018, 2021, or ever, because revenue growth should exceed outlays in any actuarial projection of the actual surplus. In actuality, there are years when tax revenues might be less than 6.5% more than the year before, or even negative, and this causes an actuarial deficit or account deficit respective of a negative net increase in assets at year end. As long as there is a combined trust fund surplus it should be possible to distribute the costs amongst the program and avoid any account deficits. Methodology and issues to be voted upon, require that the comparative intermediate projections begin with 2017, 2018 redone twice, to account for the OASI outlay overestimate and optimal OASDI tax rate distribution and year thereafter re-done three times, under current law with 2018 OASI overestimate corrected, at the optimal OASDI tax rates and distributing the tax on the rich to three OASDI and SSI trust funds. 6.5% revenue and 5.9% outlay growth projection for 2019 in the 2018 Annual Report, is far more realistic than 10.5% revenue and 8.0% outlay growth estimated in the 2017 report. All years are redone to reflect average optimistic 6.5% payroll tax, 10% tax on benefits, 3.4% interest revenue DI trust fund, 3.0% interest revenue OASI trust fund, to sustain 6.0% OASI, 4.0% DI outlay, 3.0% Administrative and 2.0% R & R Interchange growth from 2018 revised for 5% rather than 6% OASI outlay growth. DI outlays should grow 4% annually to afford a 3% COLA and 1% population growth. At 6.5% OASI outlay growth is slightly overestimated for 2019, it should be 3.0% population growth + 3.0% COLA equal 6.0% OASI benefit outlay growth, this improves the OASI and combined trust fund ratio by 1%. This 1% seems to discredit the 2.1% DI tax rate and make it seem as if the 2.0% DI tax rate should be adopted to spare the OASI deficit, without necessarily reimbursing the DI trust fund $240 billion to sustain a 3% COLA, 1% population and trust fund growth into a future without poverty by 2030, when the DI tax rate is actually 2.1% for the intermediate projection, do not be fooled.

 

Actual Surplus of the Social Security Administration Trust Funds 2017 – 2022

(billions)

 

Source: 2018 Annual Report of the Board of Trustees of the Federal Old Age Survivor Insurance Trust Fund and Federal Disability Insurance Trust Fund. Tax rate / 12.4 = Proportion x Combined payroll tax = Payroll Tax Revenues

 

10. To prevent the unnecessary OASI deficit, that is driving the Actuary to madly declare a premature combined deficit for the intermediate projections, Congress must not wait for the expiration of the 2.37% DI tax rate in 2019 from the Bipartisan Budget Act of 2015 to adopt a 2.1% DI tax rate beginning in 2018 for the intermediate projection under Sec. 201(b)(1)(T) of the Social Security Act under 42USC§401(b)(1)(T) FY18. By repealing ‘Adjustment of the contribution and benefit base’ tax loophole for the rich and DI tax exemption of Title I State retirement contributors and replacing it with ‘Supplemental Security Income Trust Fund’ Section 230 of the Social Security Act under 42USC§430 it is estimated that SSI benefits would increase in stages, 228% the first year of the tax, 25% the second, 5% the third, and normal 4% growth the fourth, and thereafter, unless legitimate demands to end poverty by 2030 or actuarial differences or market failure require a change in plans. It is estimated that the number of SSI beneficiaries would increase 225% from 8.1 million in 2018 to 18.5 million in 2019 to 23.1 million in 2020 with an average benefit of $589 a month, $7,069 a year, costing $163.2 billion in 2020, when the table above provides $173.9 billion, enough for 24.6 million average benefits. New monthly benefits must cost less than new monthly revenues to sustain an actual surplus. By 2020 individual income tax and customs duty revenue growth from non-discriminatory travel document sales, energy export tax and normal federal spending growth might yield on-budget surplus, by consciously adopting 2.5% government, 3% services, 3.3% food stamp and 4% cash benefit outlay growth rules on federal outlay growth and consumer economic growth is sustained by taxing the rich the full 12.4% OASDI tax on all their income to create an SSI Trust Fund to end child poverty by 2020 and all poverty by 2030. 

 

Sanders, Tony J. Health and Welfare: Fiscal Year 2020. Book 3. 13^th ed. Hospitals & Asylums HA-12-11-18 514 pgs. www.title24uscode.org/ha20.pdf