Entitlement Spending: What The Programs Are and How They Have Evolved
| Social Security Act signed into law by
President Roosevelt. Created during the Medicare Part D signed Medicare cash height of the Great Depression, the Act into law to provide flow (incl. Trust provides monetary support to retired federal subsidies to Fund interest) people from payroll taxes paid by current prescription drugs for turned negative workers and employers. Medicare beneficiaries. (-$5 billion).
Social Security Trust Fund Social Security Trust Fund cash flow = $766 million. balance started to decline.
Unemployment Insurance signed into law as part of
the Social Security Act, Amendments to Social Security setting up a joint federal- Social Security Act cash flow (ex. state program (funded via raising taxes to Trust Fund taxing employers) to shore up funding interest) provide temporary Medicare & Medicaid for the Social projected to monetary support to laid- created to provide Security Trust turn negative by off workers. hospital & medical Fund. Congressional insurance to elderly Budget Office.
& disabled.
KP Source: Social Security Administration, Dept. of Health & Human Services. (@E www.kpcb.com USA Inc. | Income Statement Drilldown 79
Entitlement Spending: 76% Is Directed to Social Security +
Medicare + Medicaid
Dedicated Entitlement Revenue Entitlement Spending Breakdown, Breakdown, F2010 F2010 Total = $0.87T Total = $1.98T Other
Housing Assistance
a ol Other — nsurance 00 utrition 5% Assistance
Medicare Unemployment 21% Benefits 8% KP Note: USA federal fiscal year ends in September; Source: White House Office of Management and Budget. (@ www.kpcb.com USA Inc. | Income Statement Drilldown 80
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