As part of the White House’s more extensive 2024 budget proposal, President Joe Biden presents his plan to assist in funding the Medicare healthcare program for the next 20 years. In addition, he intends to increase taxes for Americans making above $400,000 annually.
The Biden administration intends to increase the net investment income tax from 3.8 percent to 5 percent for all high incomes. The government will stop paying for several prescription medications along with the increase.
The White House would focus on investment income and capital gains. The target population includes business owners who now pay taxes on their income but are not subject to the investment income tax.
This plan will fund Medicare for 25 years. The Republican-led House of Representatives will oppose this proposal, but the Biden administration will continue to work on it.
Joe Biden Cut Funds From Medicare
President Joe Biden and Republicans have been at odds over what should be done about Medicare and Social Security. As the national debt limit becomes more pressing, politicians must agree on a debt ceiling or risk unheard-of economic repercussions.
Biden stated that the GOP wants to put popular programs on the road with budget cuts. He emphasized Rick Scott’s idea from Florida to have all federal laws expire after five years, according to the ABC News post.
Scot claims that when Biden approved the Democrats’ Inflation Reduction Act last year, he removed $280 billion from Medicare revenues. Also revealed by House Speaker Kevin McCarthy was Biden’s $300 billion cut to Medicare.
Some specialists contradict Scot and McCarthy’s claims. According to experts, the Inflation Reduction Act permits the federal government to haggle over prescription pricing. Additionally, it mandates that drug firms give Medicare a refund. In addition, it keeps program costs low without taxing recipients.
According to Professor Stacie Dusetzina, the Inflation Reduction Act’s changes to Medicare are utterly absurd. According to Juliette Cubanski, the deputy director of the Kaiser Family Foundation’s program on Medicare Policy, the notion is untrue.