“What they didn’t tell you is what they’re proposing would cause Medicare to go bankrupt by 2016.” 

--Vice President Biden

This is wrong. There are different parts of Medicare, much of which is paid from general revenues and premiums. Part A, which pays hospitals, has a “trust fund,” made up of special-issue Treasury bonds, that always seems to be on the edge of running dry. But even so, the payroll tax could pay most estimated expenditures for decades. And does anyone doubt Congress would not step in and fill any gaps?