Biden Budget Will Propose Tax Increase to Bolster Medicare

[Yo_Mama_Been_Loggin]

WASHINGTON — President Biden, as part of his budget set for release on Thursday, will propose raising a tax on Americans earning more than $400,000 as part of a series of efforts to extend the solvency of Medicare by a quarter-century.

The president will also propose expanding that tax, which helps fund health care programs, to cover a wider swath of income, including some earnings by business owners that currently are not subject to it, White House officials said in a fact sheet released on Tuesday morning. Mr. Biden will also seek to broaden a measure, passed last year entirely with Democratic votes, that allows Medicare to negotiate the price of certain prescription drugs with pharmaceutical companies, which is projected to save the government money.

His plans are unlikely to become law. They are almost certain to be rejected by Republicans, who won control of the House in November and roundly oppose tax increases.

But in focusing on Medicare in the budget and before its release, Mr. Biden is seeking to sharpen a contrast with Republicans and cast himself as a protector of cherished retirement programs — both for his likely re-election campaign and for a looming congressional battle over raising the nation’s borrowing limit that centers on taxes, spending and debt.

https://www.msn.com/en-us/money/markets/biden-budget-will-propose-tax-increase-to-bolster-medicare/ar-AA18jHfA

[JohnSJ]

1. Raise the CAP!!!

[Meadowoak]

3. +1

[Silent Type]

4. That would help Social Security, but don't think there is a Cap on Medicare tax.

In fact, over a certain level of income — around $200,000 — they tack on an additional 0.9%.

[madville]

5. There isn't a Cap on Medicare tax

It actually goes up an additional 0.9% on all wages over $200,000 annually.

[JohnSJ]

8. Doesn't the social security administration collect Medicare premiums? 1.45% of wages

[W_HAMILTON]

6. Oh my god.

THERE IS NO CAP ON MEDICARE WAGES AS IT IS.

Third time today I've heard this catchphrase wrongly used in response to Biden's actions.

[JohnSJ]

9. Doesn't the SSA collect Medicare premiums? 1.45% of wages

[W_HAMILTON]

12. I don't know right off hand, but what does that have to do with anything?

Medicare is paid for by a dedicated tax.

Social Security is paid for by a dedicated tax.

They are not the same tax.

Medicare has no cap; ALL covered wages are subject to the Medicare tax.

Social Security has a cap; not all covered wages are subject to the Social Security tax.

[JohnSJ]

16. Thanks, I thought they were combined

[W_HAMILTON]

18. Together, they are often referred to as the FICA Tax...

...but they are still two very different taxes.

Here is a quick explanation of the term and the taxes from the SSA: https://www.ssa.gov/thirdparty/materials/pdfs/educators/What-is-FICA-Infographic-EN-05-10297.pdf

[JohnSJ]

19. I appreciate this +++

[yorkster]

10. I think most people know raise the cap refers to Social Security.

Maybe they just want Pres. Biden to move on to SS after he tackles medicare. Sounds good to me.

.

[W_HAMILTON]

11. From my experience, there are plenty enough around that do not know the difference.

And these being the first responses of people to an article about Medicare would indicate that.

It's also similar to how people get Medicare confused with Medicaid quite a bit; unless you are educated on the subject or have had some direct experience with them, it's easy enough to get them confused, but to successfully promote and further their policy agenda, people need to be educated on the subjects with which they speak.

[yorkster]

13. You know, it well may be that many people conflate medicare, medicaid, and social security.

It may also be the case that when one hears that Pres. Biden is looking to protect Medicare for future generations, one may make a natural leap to thoughts of protecting social security, which raising the cap would do.

[W_HAMILTON]

14. Again, from what I've seen, that's not the case.

And protecting Social Security will not protect Medicare. Raising the cap on Social Security is a completely separate funding source and will not protect Medicare. And if you are gonna make that sort of leap, you can make that lead to almost anything. Might as well shout whatever the new "raise the minimum wage" slogan is in response to talk of protecting Medicare, since higher wages = more Medicare taxes paid in.

I just think it does no good to make those sorts of leaps and rather simply focus on the topic at hand, which is protecting Medicare and ensuring it is there and well-funded for the next generations in line for it.

[DURHAM D]

2. Kill Medicare Advantage.

[CousinIT]

7. I LIKE IT. n/t

[newdayneeded]

15. Gol darn it!!!!

Why won't Biden think of those multi Millionaires that have 6 or 7 million in their savings accounts!

They can't afford a tax increase!!1!11!1!

Is the sarcasm tag really needed here?

[NowISeetheLight]

17. Reality

I’ve read that the average Medicare recipient receives 2-5x what they paid in as benefits. The program is horribly underfunded. After working in hospital revenue cycle for a career I can support this fact. According to JAMA (Journal if the American Medical Assn) over a quarter of all Medicare spending goes to those in the last year of life. Instead of making people comfortable and pain free (like hospice) it’s “keep them alive at all costs” in many cases.

I remember working in a hospital in AZ in CDI around 2011. We had a patient in ICU. A lady in her 70s with stage 4 breast and lung cancer. Lifetime smoker. Her sister was medical OOA and insisted we keep her alive. She was vented, sedated, a vegetable, absolutely no quality of life. Medicare was it for insurance so we were losing $$$ every day. Finally the ethics board took up the case and the decision was made to discontinue care. I’m very sympathetic to family losing someone. I’ve list both parents in the last decade. But I’d never let them “linger” like that.

As a society we should ask if we are getting anything for our money. I see TV commercials for these genetic cancer drugs. They claim to “extend life” but the small print says stuff like ‘lives 16 months instead of 11”. I google the cost of these drugs and it’s tens of thousands a month. I looked up Keytruda and it’s $11k every three weeks.

I fully agree a tax increase should be considered, but the underlying problem of drugs costing too much is still a problem to be solved.