Joe Biden

Biden Plans To Save Medicare By Making The Rich Pay Their Share

Last updated on July 18th, 2023 at 02:03 pm

President Biden’s plan to save Medicare raises taxes on the wealthy and eliminates a loophole that allows the rich to hide income from Medicare taxes.

According to a White House Fact Sheet provided to PoliticusUSA:

The proposals in the President’s Budget would extend the solvency of Medicare’s Hospital Insurance (HI) Trust Fund by at least 25 years, the Medicare Office of the Chief Actuary estimates. While the most recent Medicare Trustees Report projected that the HI Trust Fund would be insolvent in 2028, the President’s Budget would extend solvency at least into the 2050s.

Modestly increasing the Medicare tax rate on income above $400,000. The Budget proposes to increase the Medicare tax rate on earned and unearned income above $400,000 from 3.8 percent to 5 percent. Since Medicare was passed, income and wealth inequality in the United States have increased dramatically. By asking those with the highest incomes to contribute modestly more, we can keep the Medicare program strong for decades to come.

Subscribe To Our Newsletter:

Closing loopholes in existing Medicare taxes and dedicating the Medicare net investment income tax to the HI Trust Fund. High-income people are supposed to pay a 3.8 percent Medicare tax on all of their income, but some high-paid professionals and other wealthy business owners have managed to shield some of their income from tax by claiming it is neither earned income nor investment income. The Budget would ensure that Medicare taxes apply to incomes over $400,000 per year, without loopholes. It would also dedicate the revenue from the Medicare net investment income tax to the HI Trust Fund, as originally intended.

A huge problem with funding these important programs is that the taxable income threshold is currently $160,200. The burden of funding Medicare is being carried by middle and lower-income people, even though more wealthy people are eligible and often utilize the program.

Everyone has long known what the fix is for Medicare, but Republicans have blocked it for decades because their goal is to destroy the program. The answer isn’t to cut Medicare but to ensure people pay their fair share.

Republicans offer lots of empty talk on not cutting Medicare, but President Biden has a plan and is willing to fight to protect it for future generations.

Follow Me
Jason Easley

Jason is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements. Awards and  Professional Memberships Member of the Society of Professional Journalists and The American Political Science Association

Recent Posts

Trump And House GOP’s Promise To Not Cut Social Security Is Total Nonsense

Trump got House Republicans to not use reconciliation to cut Social Security. The problem is…

1 hour ago

Trump And Mike Johnson Agree To Apparently Cut Americans’ Healthcare To Pay For Tax Cuts For The Rich

President-elect Trump and Speaker Mike Johnson have agreed to a deal that would fund the…

2 hours ago

Dozens Of Republicans Humiliate Trump/Musk By Voting Down CR

Donald Trump demanded that the debt limit be raised as part of the government funding…

22 hours ago

Trump And Vance Blame Biden For Elon Musk Caused Chaos

Donald Trump and JD Vance are blaming President Biden for the havoc caused by Elon…

2 days ago

House Republicans Are Falling Apart And Now Mike Johnson Could Be Toast

The first little bit of pressure involving passing a bill to keep the government open…

2 days ago

Elon Musk Melts Down As House Republicans Show Him That He Has No Power

X boss Elon Musk is throwing a tantrum on his social media platform as House…

2 days ago