Wednesday, March 29, 2023

Biden plans to tax high incomes while saving the Medicare system

Biden Plans To Tax High Incomes While Saving The Medicare System

An increase in the tax from 3.8% to 5% or on earnings and tax exemptions above US$ 400,000 calls for the federal health insurance program’s solvency by 2000

Bogotá March 7, 2023 (La República) – US President Joe Biden will seek to increase the Medicare tax for people with high incomes and promote more negotiations on the price of drugs to help keep the federal insurance program paid up to a minimum of 2000 as part of his budget proposal this week, the White House said .

The tax increase from 3.8% to 5% or income above $400,000 earned and unearned is part of a package of proposals aimed at paying the Medicare Hospital Insurance (HI) Trust Fund for at least twenty years, the White House said in a statement. on Tuesday

“Require the wealthy to pay a little more than their fair share to strengthen Medicare for all long-term,” Biden wrote separately in a New York Times guest commentary.

Biden tried to tie Republicans to the idea of ​​cutting money for the insurance program for the elderly and disabled as part of negotiations to raise the US debt limit of $31.4 trillion. The Democratic president has pledged to offer his vision for Medicare funding, and challenged Republicans to offer theirs.

The president is scheduled to unveil his plans on Thursday, with a speech in Philadelphia to highlight his plan, though he is likely to face opposition from Republicans who control the House.

Calling the increase “modest,” Biden added in the Times: “When Medicare was passed, the richest 1% of Americans had no more than five times the wealth of 50% of the combined fund, and it makes sense to make some adjustments to reflect today’s reality.”

The proposal also seeks to close the loophole that allows high-income earners to take part of their tax breaks, the White House said.

The Inflation Reduction Act (IRA) was passed by Democrats last year, authorizing Medicare to negotiate the price for high-cost drugs. The budget proposal would allow Medicare to negotiate the price of more drugs and do so before they are released, saving $200 billion over 10 years, the White House said.

Without any action, the most recent Medicare managers report released the trust fund by 2028.

Some House Republicans have said that Medicare, along with Social Security, which offers unemployment and disability payments, should be included in any business budget. While they are popular, the two programs account for about one-third of federal spending, according to the Congressional Budget Office, and are expected to increase secularly.

Published in La República, available here

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