The Business Roundtable representing CEOs of major US corporations recommended increasing eligibility ages for Social Security and Medicare as a way to bolster the two programs.
It would raise the retirement age for Social Security from 67 to 70 and the eligibility age for Medicare also to age 70.
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These measures would eliminate the need to increase tax rates to fix the programs.
The Business Roundtable along with other business groups is recommending that Congress address the shortfalls in both programs as part of the debt-ceiling negotiations.
Currently, Medicare, Medicaid, and Social Security comprise 42% of the federal budget. The programs are estimated to account for half of the budget
The proposals come as Congress still struggles to negotiate a compromise on spending cuts enacted by the fiscal cliff.