Posted on

According To “Mish” Shedlock The US Government Has Lost $1 Trillion Due To Fraud.

Fraudulent Medicare, Medicaid, EITC, Tax Refunds, etc. Total $1 Trillion Since 2003
A huge chunk of your tax dollars every year goes straight into the pockets of crooks. Nearly one in three earned income credits (EIC) is fraudulent. And the numbers keep getting bigger every year according to the Government Accountability Office.

Please consider GAO: Feds Made Nearly $1 Trillion in Overpayments Since Fiscal 2003.
Government waste took a significant turn for the worse in fiscal 2014, rising dramatically to $124.7 billion from $105.8 billion in fiscal 2013.

Since fiscal 2003, “cumulative improper payment estimates have totaled almost $1 trillion,” the Government Accountability Office (GAO) said in a new report.

U.S. Comptroller General Gene Dodaro testified Thursday on the GAO’s new findings (http://www.gao.gov/products/GAO-16-92T) before the Senate Finance Committee.

The GAO said three programs were most at fault: Medicare, Medicaid and the Earned Income Tax Credit (EITC).

The Earned Income Tax Credit program was the worst offender.

The Internal Revenue Service estimated that the program erroneously handed out $17.7 billion worth of “improper” payments. That amounts to a whopping 27.2 percent of the total $65.2 billion in EITC refund checks that the IRS sent out in fiscal 2014.

Medicare was nearly as bad. The program, which covers about 54 million elderly and disabled beneficiaries, incorrectly doled out $59.9 billion in fiscal 2014, which is about a tenth of its $603 billion budget.

So, one out of every $10 that Medicare spent last year was erroneous, the GAO found. Medicaid made $17.5 billion in mistaken payments out of its $304 billion budget, for a nearly 6 percent error rate.

Besides the EITC program, the federal programs with the highest reported error rates for fiscal 2014 included the School Breakfast program (25.6 percent) and the Farm Security and Rural Investment Act Programs (23.1 percent).
GAO Report

The GAO Report is called Addressing Improper Payments and the Tax Gap Would Improve the Government’s Fiscal Position

Inquiring minds may wish to take a look.

Correct Term is Fraud

Writer Elizabeth MacDonald labeled this as “Overpayments” or “Waste”. The GAO labels this as “improper payments”.

Let’s be more accurate, it’s theft of taxpayer money via fraud.

Moreover the GAO numbers are dramatically understated. Disability fraud, not part of the GAO report, is rampant.

States’ Incentive to Promote Disability Fraud: States Have an Incentive to Promote (Not Stop) Disability Fraud; So How Much Fraud Is There?
14 Million on Disability: Unwilling to Work; 25% in Hale County AL Collect Disability, 14 Million Nationwide; A Simple Solution
Why Work?: Why Work for $7.25 When Welfare Pays $15.00 in 12 States and $8.00 in 33 States? Is a Low Minimum Wage the Problem?
Puerto Rico Fraud: Puerto Ricans Get U.S. Disability Benefits for Inability to Speak English; Disability Deal Explained
Police and Fire Fraud: 102 Police and Firefighters Caught in Disability Scam
Claims Hit Record: Disability Fraud Holds Down Unemployment Rate; Jobless Disability Claims Hit Record $200B in January

Clinton Ends Welfare “As We Know It”

Want to understand the huge spread in disability fraud? Look no further than Bill Clinton as explained in detail in link #1.

This all goes back to 1996 when president Clinton promised to “end welfare as we know it”. Clinton did indeed do just that, and fraud is the result.

Why?

The federal government pays disability, but states pay part of welfare costs. This creates a huge incentive for states to actively promote disability fraud (simply to get people off state-sponsored welfare programs).

And that they have done. A primary example pertains to Hale County (see link #2).

25% of the people in Hale County Alabama collect disability. They are all tied to Hale county’s Dr. Timberlake.

Dr. Timberlake asks a simple question to all his patients. “What grade did you finish?” If you claim “back pain” and do not have a degree, Timberlake believes you are disabled.

The GAO says “Old Age, Survivors, and Disability Insurance” claims are only 0.4% improper. Taking the above into consideration I would be shocked if the real percentage is under 33%. Indeed, 67% fraud is probably more like it.

And if so, what’s the real dollar total?

Mike “Mish” Shedlock
image: http://i984.photobucket.com/albums/ae324/MISHGEA/BG%20Banner.png

BitGold: Open Your Account Today!

Fraudulent Medicare, Medicaid, EITC, Tax Refunds, etc. Total $1 Trillion Since 2003

Posted by Michael Shedlock at 2:49 PM

Disclaimer:The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
Newer Post Older Post Home
Subscribe to:
Last 10 Posts
Oct 05 at 1:58 AM Why Are Mules Stubborn? Why Can’t Blind Jackasses See?
Oct 04 at 9:43 PM Carly Fiorina’s No-Fly Zone Proposal Now Viewed as Impossible; Good News, Bad News
Oct 04 at 2:49 PM Fraudulent Medicare, Medicaid, EITC, Tax Refunds, etc. Total $1 Trillion Since 2003
Oct 03 at 8:23 PM Trump vs. Fiorina vs. Obama on Isis; Fiorina and the “Law of Bad Ideas”
Oct 03 at 2:18 PM Robot Taxis Starting 2016 in Japan; Self-Driving Trucks on German Autobahn; Millions of Truck and Taxi Driver Jobs will Vanish in US by 2025
Oct 02 at 2:37 PM Hikes Keep On Slippin’, Slippin’, Slipin’ Into the Future; Treasury Yields Sink Again
Oct 02 at 11:41 AM Factory Orders Hit the Skids, Last Month Revised Lower, Shipments Down 4th Time in 5 Months
Oct 02 at 10:24 AM Payroll Disaster: Establishment Survey +142K Jobs, Employment -236K; Labor Force -350K; 59K Downward Revisions
Oct 01 at 7:58 PM GDPNow Forecast Plunges to 0.9% Following Advance Report on US Balance of Goods
Oct 01 at 2:05 PM Three Month Treasury Yields Turn Negative; Long End Flattening; Economy Strengthening or Recession Warning?
Search This Blog

Search
ABOUT MIKE SHEDLOCK

image: http://2.bp.blogspot.com/-egH0QkTxRYY/VO5TrJTFGZI/AAAAAAAAclk/H5IGg5AoGHQ/s1600/Mish%2BNew%2B118.png

Mike “Mish” Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Continue reading…

image: http://www.goldmoney.com/~/media/Images/Banners/Class1/goldmoney-affiliate-web-banners-250×300.ashx

Goldmoney: The best way to buy gold and silver
Top Financial Blog Citations

New York Times: NYT 10th Annual Year in Ideas – #1 Idea of the Year ‘Do-It-Yourself Macroeconomics’

Time Magazine: Best 25 Financial Blogs

Bloomberg: Financial Blogs: The Best of the Bunch

CNBC: Best Alternative Financial Websites

Strategist News: Best Business Blogs 2011

image: http://1.bp.blogspot.com/-FFbb3wMQ41c/UT7YLpug4aI/AAAAAAAAVYk/Gisv362JaNs/s1600/Mish+Android.png

Android app on Google Play

image: http://www.elliottwave.com/sharedcontent/images/logo-gradient.gif

Elliott Wave International
(Interview) Commodities: Multiple Markets Ending Their Recent Trends Now
The Two Faces of Stock Market Volatility
Stocks: Why Following the Crowd is Usually a Big Mistake
(Interview) Deflation: It’s Been a Stealth Move
(Video) U.S. Dollar Vs. Canadian Dollar: The Real Reason Behind the Rally
(Interview) 3 Ways the Elliott Wave Principle Enhances Your Trading
Elliott Wave International’s Senior Commodity Analyst, Jeffrey Kennedy, has just recorded a live webinar titled ‘Today’s Top Commodity Opportunities.’ Besides commodities, Jeffrey also shows you new Elliott wave opportunities in markets like the DJIA and U.S. dollar. Today, we invite you to watch this presentation free — and get a fresh Elliott wave perspective on more than a dozen markets from this recognized Elliott wave expert. Watch this new video now — and see if any of these new opportunities are on your radar >>

BLOG ARCHIVE
image: http://d1ty0e8cxefhfl.cloudfront.net/images/logos/TalkMarkets.png
Fourth Quarter 2015 Preview: Time To Dig In
Article By: David Fabian
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_CDBBD00F-2B81-412D-A629-B7862BC1D14E.jpeg?app=196330

Monday, October 5, 2015 5:26 AM EDT In this article: SPY
Binary Options Trading Opportunities – October 5, 2015
Article By: Anyoption
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_DC9B2A92-1C7B-4C2C-A0F8-CD8E4EEB5025.jpeg?app=199419

Monday, October 5, 2015 5:12 AM EDT In this article: GLD, OIL
Weighing The Week Ahead: What Is Behind The Recent Market Volatility?
Article By: Jeff Miller
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_8983E831-9956-46D9-8F05-FD8003BC5249.jpeg?app=196093

Monday, October 5, 2015 5:02 AM EDT In this article: SPX, OIL
Emerging Market Meltdown May Plunge Global Economy Into Recession
Article By: Tyler Durden
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_C7E348DB-583E-4A38-9662-582A1A07DADD.jpeg?app=195975

Monday, October 5, 2015 4:49 AM EDT
EU Session Bullet Report – USD Still In Range, Gold Jumps
Article By: Easy Forex
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_D66C87D6-86E5-49CB-97DE-085F189822B4.jpeg?app=206390

Monday, October 5, 2015 3:52 AM EDT In this article: ERO, GBB, GLD, JYN, OIL, DAX
Forecasts For The Weeks Of October 5 And 12
Article By: Peter Morici
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_5CC6C9DA-E176-4727-BC5B-E7DCF6461D1D.jpeg?app=196382

Monday, October 5, 2015 3:38 AM EDT
Financial Markets Week In Review – September 28, 2015 – October 2, 2015
Article By: Michael Gouvalaris
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_5B937887-E803-428F-BCA4-308B40805DD2.jpeg?app=196119

Monday, October 5, 2015 12:18 AM EDT
The Expectations Of A Fed Rate Hike Are Collapsing, Even In The Long Term
Article By: Sober Look
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_0D464232-43D7-4B57-880A-1A01AB3FB6ED.jpeg?app=195989

Sunday, October 4, 2015 11:47 PM EDT
USA Economic Outlook Appears Stable
Article By: Steven Hansen
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_3A7C0DA3-B000-49ED-AEEF-0617967DFA5C.jpeg?app=196006

Sunday, October 4, 2015 11:06 PM EDT
Silver Price Spikes, But What Demand – October 4, 2015
Article By: Keith Weiner
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_15522A3A-43D9-4C1E-8F4E-7DA53C4CC7F2.jpeg?app=206544

Sunday, October 4, 2015 10:26 PM EDT In this article: GLD, SLV
Stonebridge Biopharma IPO: Consider Holding Off At This Early Stage
Article By: Don Dion
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_028F5F6B-B7A2-49FC-9666-657AD00A7683.jpeg?app=210494

Sunday, October 4, 2015 9:42 PM EDT In this article: NVCR, PFGC, SBBP
Long-term Relationships And Credit Scores
Article By: David Merkel
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_BB071C02-355B-4FA2-934A-D7F87F13746D.jpeg?app=196347

Sunday, October 4, 2015 9:22 PM EDT
Sell And Hold
Article By: Tim Knight
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_7CE287B1-D8F6-48E6-97BE-AEF4A271593F.jpeg?app=197084

Sunday, October 4, 2015 8:29 PM EDT In this article: SPX
Gold Recovers, Threatens Further Upside
Article By: FXTechstrategy Team
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_E9B24425-07A1-4630-9100-E0B749E5D29A.jpeg?app=208948

Sunday, October 4, 2015 8:08 PM EDT In this article: GLD
The Dark Underbelly Of China And Its Economic Progress
Article By: ValueWalk
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_175DB85D-31D2-4BD8-BEAA-FA1E4A2841DD.jpeg?app=201255

Sunday, October 4, 2015 5:00 PM EDT
Normalizing The Fed Rate: This Time Is Different
Article By: Angry Bear
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_EBECBBCE-B7CF-4FF4-A116-3C771D7A482C.jpeg?app=196183

Sunday, October 4, 2015 4:40 PM EDT
4 Pole Stars To Bet On As Q3 Earnings Season Nears
Article By: Zacks Investment Research
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_974E840B-81A9-437A-8FC5-0A85B46C2A57.jpeg?app=196659

Sunday, October 4, 2015 4:27 PM EDT In this article: AAT, BANR, JBLU, LC
Testing The Water
Article By: Blair Jensen
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_B999022C-06DB-426A-B6C4-88ED53F24031.jpeg?app=196176

Sunday, October 4, 2015 4:13 PM EDT In this article: AAPL, TSLA, SPX
Fraudulent Medicare, Medicaid, EITC, Tax Refunds, Etc. Total $1 Trillion Since 2003
Article By: Mish Shedlock
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_333BBEAE-8C2C-4003-8004-2D9A066C01AE.jpeg?app=196446

Sunday, October 4, 2015 4:06 PM EDT
Seven Charts On The State Of The American Labor Market
Article By: ValueWalk
image: http://d1ty0e8cxefhfl.cloudfront.net/user_content/contacts/thumb_175DB85D-31D2-4BD8-BEAA-FA1E4A2841DD.jpeg?app=201255

Sunday, October 4, 2015 4:01 PM EDT
<< Read More At TalkMarkets >>
ACTING MAN AUSTRIAN ECONOMICS DISCUSSION

EU Moloch in a Fresh Bid to Inflate
A Spot of Unenjoyment
Here Come the Money Helicopters!
What Not to Do in Russia
The Baby Boomer Survival Guide (Part II)
DAVID STOCKMAN’S CONTRA CORNER

Lashed To The Zero Bound—–The Fed’s Ship Of Fools
Role Reversal in the New Cold War: The Washington ‘War Party’ Is The New Aggressor And Its Far More Dangerous
It’s The Entrepreneur That Saves An Economy – Not The Fed.
$1 Trillion In Federal Overpayments—-Fraud In Medicare, Medicaid, EITC, Tax Refunds, Etc.
U.S. hedge funds brace for worst year since financial crisis
DSHORT.COM – FINANCIAL LIFE CYCLE PLANNING

World Markets Weekend Update: A Mixed Bag
S&P 500 Snapshot: A Rally on the Disappointing Jobs Report
Market Remains Overvalued, But Off Its Interim High
Market Valuation, Inflation and Treasury Yields: Clues from the Past
The Big Four Economic Indicators: September Nonfarm Employment
CHRISMARTENSON.COM NEWS FEED

Deflation Warning: The Next Wave
Charles Eisenstein: What Is Wealth?
Buy Gold While You Still Can!
Kurt Cobb: Money Cannot Manufacture Resources
Jeffrey Brown: To Understand The Oil Story, You Need To Understand Exports
CHINA FINANCIAL MARKETS

If we don’t understand both sides of China’s balance sheet, we understand neither
Do markets determine the value of the RMB?
China’s stock markets and revisiting 2011 predictions
Interpreting information in China’s stock markets
Please Mr. Lew do not “diminish” Alexander Hamilton
STEVE KEEN’S DEBTWATCH

Talking Interest Rates with Phil Dobbie
Discussing the UK with Simon Rose on Share Radio
Should The Fed Raise Rates?
Critical Realism & Mathematics versus Mythematics in Economics
Why China Had To Crash Part 2
OFTWOMINDS

Welcome to the Future: Downward Mobility and Social Depression
What’s Cooking at Our House: Thai Pumpkin-Chicken Curry
The Dangerous Illusion That Risk Can Be Offloaded Onto Others
You Can’t Separate Empire, the State, Financialization and Crony Capitalism: It’s One Indivisible System
Following in Ancient Rome’s Footsteps: Moral Decay, Rising Wealth Inequality
Read more at http://globaleconomicanalysis.blogspot.com/2015/10/fraudulent-medicare-medicaid-eitc-tax.html#EvLEwmiLoHXAPpfM.99

Advertisements

About tatamkuluafrica

I am a man who has lived n 6 of the 7 continents. I first arrived in Africa on April 18, 1981. Africa has been a part of my life since. I spent 8 months living in a Xhosa village in the Eastern Cape Province of South Africa. I was given he nickname Tatamkulu Africa. In Xhosa it means "Grandfather Africa." In April of 1994 I was allowed to vote in the first democratic election in South Africa..I was honored to be part of such a historical moment. It was a beautiful and a magical day.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s