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Government marches on! A GAO report has found that since 2003 the federal government has wasted almost a trillion dollars in improper overpayments, with the numbers increasing by 20% in 2014.
The GAO said three programs were most at fault: Medicare, Medicaid and the Earned Income Tax Credit (EITC). These three government programs were responsible for a full three-quarters of the nearly $19 billion in erroneous payments the federal government made in fiscal 2014, the GAO said. “Improper payments remain a significant and pervasive government-wide issue,” the congressional watchdog unit warned.
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. And that means the federal government is now fast approaching the day when one out of every three earned income tax credits is erroneous.
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.
It is obvious that the solution to this government problem is to give the government more power and money. How else can they reduce this waste but by spending more money!