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800.428.0272, ext. 688 sseals@tscpa.net Oct. 19, 2004 Texas Society Takes Stand on Social Security and Medicare Reform Group Passes Resolution Urging Elected Officials to Act Now on Needed Social Security and Medicare Reforms DALLAS — Urging CPAs to be ready to assist policy makers in finding realistic solutions to the looming Social Security and Medicare funding crisis, the Texas Society of CPAs’ Executive Board recently passed a resolution and issued a white paper calling for reform of these two federal programs. The resolution notes that benefit payments will soon exceed available funds for both programs, creating a fiscal crisis for policy makers and potentially passing a massive financial burden on to future generations. That’s why TSCPA leaders believe policy makers should set aside their political agendas and take action sooner, not later. “Simply put, we think the case for Social Security and Medicare reform is a not a matter of politics or ideology; rather, it’s based on simple accounting. The numbers do not add up, and the future obligations of the programs are not achievable under current scenarios,” TSCPA CEO/Executive Director John Sharbaugh said. According to TSCPA’s resolution, inaction by elected officials will likely result in an increase in federal deficits, inflation, and taxes. “Research shows that Social Security is the largest government program today, making up about 21 percent of all federal spending,” TSCPA Chairman Ed Polansky, CPA, said. “Medicare isn’t far behind, representing 19 percent of the federal budget. Projections say that these two programs will consume nearly 50 percent of all federal tax dollars by 2045, clearly showing that these programs are not fiscally sustainable in their current form and structure.” TSCPA plans to distribute the white paper and resolution to other state CPA societies and coordinate efforts to work toward reform. “AICPA and many state CPA societies have launched financial literacy efforts aimed at improving the public’s money management skills,” Polansky said. “Part of the profession’s financial literacy effort should include informing the public about the country’s changing demographics and the financial effects these will have upon federal programs like Social Security and Medicare.” ABOUT TSCPA TSCPA (http://www.tscpa.org) is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has 27,000 members, one of the largest in-state memberships of any state CPA society in the United States. TSCPA is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession. |
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